David Brown met with Stan Steele, a loan officer with the Bank of Idaho (now First Interstate Bank), to discuss borrowing money from the bank to start a new business. After learning that he did not qualify for the loan on the basis of his own financial strength, Brown told Steele that his former employers, James and Donna West of California, might be willing to guarantee the payment of the loan. Steele talked to Mr. West, who orally stated on the telephone that he would personally guarantee the loan to Brown. Based on this guaranty, the bank loaned Brown the money. The bank sent a written guarantee to Mr. and Mrs. West for their signatures, but it was never returned to the bank. When Brown defaulted on the loan, the bank filed suit against the Wests to recover on their guaranty contract. Are the Wests liable? First Interstate Bank of Idaho, N.A. v. West, 107 Idaho 851, 693 P.2d 1053, 1984 Ida. Lexis 600 (Supreme Court of Idaho)
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