Yarbro v. Neil B. McGinnis Equip. Co.

Yarbro (defendant), denied financing to buy a tractor, convinced Russell to buy it instead under an installment contract with McGinnis Equipment (plaintiff). After Russell fell behind on payments, Yarbro — who had also borrowed the tractor on several occasions — orally promised to pay the balance if McGinnis refrained from repossessing it. McGinnis eventually repossessed anyway after another missed payment and sued for the amount due; the trial court held Yarbro liable for the full $8,751.95 balance.

Whether an oral promise to pay the debt of another is enforceable when the promisor has a personal, immediate, and pecuniary interest in the transaction and the promise is supported by sufficient consideration.