This section contains the nature of the case and procedural background.

Barron (D) and two others were sole officers and shareholders of RBR. The primary purpose of RBR was to build a bowling alley. Armbruster, Inc. (P), a general contractor, entered into a construction contract with RBR to build that alley. However, just three weeks later, P discovered that RBR did not own the land on which the alley was to be built and had not yet obtained financing for the project. On May 14th during a meeting at P’s attorney’s office, D agreed to put up his taproom as security. The lower court found that the attorney accepted P’s offer of guaranty the same day. However, the guarantee was only oral, and when the project went bust, P looked to D for payment and D refused. P sued D, and apparently, P got the verdict because D appealed.

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