Henderson V. Jacobs

On November 10, 1948, T. S. Henderson, hereinafter referred to as appellant, entered into an option agreement with A. E. Jacobs, hereinafter referred to as appellee, whereby the latter was given an option to purchase appellant's "plumbing contracting and supply business" for $6,000. One thousand dollars was paid for the option, and $1,000 was to be paid November 24, 1948, and $100 per month thereafter. Appellee did not pay the November 24th payment but took possession of the business, trucks, and inventory. On January 5, 1949 appellee borrowed $1,000 at the bank, with appellant's endorsement, and paid same to appellant on the option agreement to purchase. Subsequently appellee repaid the bank at no cost to the appellant.