Frank Stanlis, of Wickenburg, for appellant.
Edward B. Ashurst, of Wickenburg, for appellee.
De Concini, Justice. Udall, C. J., and Stanford, Phelps and La Prade, JJ., concur.
De Concini, Justice.
[73 Ariz. 197] 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.
On January 27, 1949, the parties entered into another agreement as follows:
"This Agreement, addendum to Agreement dated November 10th, 1948, by and between Taylor S. Henderson and Aubrey E. Jacobs, as named herein,
"Witnesseth: That said Jacobs shall without delay return to said Henderson the motor vehicles * * * and that the materials included in the inventory shall be returned to said Henderson (so far as such inventory shall have been passed to said Jacobs); and further said Aubrey E. Jacobs agrees to supply to said Henderson sufficient materials and supplies to equal 87% (eighty-seven per cent) of One Thousand ($ 1,000) Dollars computed at cost price.
[73 Ariz. 198] "And upon the transfer of the said properties as above stipulated, said Jacobs shall be relieved now and forever from the payment of any further payments under the said contract of November 10th, 1948, and said agreement shall be considered executed in full by said Jacobs in each and every particular.
"Dated this 27th day of January, 1949.
"Henderson shall not work in said business for a period of 5 ...