ABW Broadcasters, Inc. v. Billings Advertising Co.
Docket: No. 237
Court: Court of Appeals of Maryland; March 11, 1964; Maryland; State Supreme Court
ABW Broadcasters, Inc. acquired Radio Station WABW from its previous owner on May 12, 1960. The original owner had entered into four contracts with Billings Advertising Company for advertising services, which included partial cash payments and radio advertising time. After the purchase, ABW notified Billings of a debt of $343.00 and requested verification, to which Billings confirmed the amount owed and indicated accumulated air time for future use. ABW later fell behind on payments and canceled the contracts in writing, prompting Billings to sue for the outstanding amounts, including the value of unused air time. The trial court, presided over by Judge Duckett, found that ABW had assumed the contracts and owed less than the claimed amount. On appeal, ABW argued that there was no evidence of contract assumption, that any such assumption lacked consideration, and that the statute of frauds required a written agreement for the assumption due to the nature of the obligations. The court concluded that there was sufficient evidence to support the trial court's findings, including written acknowledgment of the contracts by ABW, payments made, and the act of cancellation. The original consideration for the contracts remained valid upon assumption by ABW. Consequently, the appellate court affirmed the trial court's judgment, ruling that the contracts were binding on ABW and upholding the amount owed to Billings.