ÿWPC! ¾# t U: %¹ 0û¿ w@º 4ú   #) 0J1 0T{ 0^Ï 0h- 0r• 0| 0†ƒ 0  1u™ 0dU*rB)œDCÅ AM BU§rv~vÓ— D3j 0@ AOÝÆ, 0Dò D/6 Be 0?‚ 0DÁ ˜HP LaserJet 4 PlusHPPCL5MS,ð,,,,,ð0nLDÒ,c½¬AZ‹"Arial RegularX(Ó~Ð$¡¡Ñ  ÑÒH°ÒÒ°ÒÑTR[  AØ'ÿ LegalLˆhÐ (Avery 4167 Post Card AØ'ÿ LegalhÐ (Avery 4167 Post CardTÑÔ€Xm¢XXXÔÑ7€¥3XXdìXXdæ7Ñ ÇÈÊÉÊÊËÌEÍUÎÊÏÊÐÓ€Úƒç"3|xÛHÈ2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Arial% Line 7 d!!!!7Border 1dd€-"Cþÿ << Gÿÿ d Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ ÔÑ  ÑÒ  ÒÒ H ÒÑ\R AØ'\ÑÑ#€d#ÑÝ  ÝÔ€ ÔÓ  ÓÔ YYY ÔFILEDÔ€ XÔÌÌò òOctoberÏ30,Ï1997ÌÌCecilÏCrowson,ÏJr.ÌÔ€ ôÔAppellateÏCourtÏClerkó óPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ion-F Geneva ÒÒ  ion-F Geneva Ò$$$$'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP Pd(ï(3ô$¤¤Ý ƒ~Ð!ÝÑ  ÑÒH°ÒÒ°ÒÑTR[  AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÔ€XjýXXXÔÑ7€jýXXdædæ7ÑÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  ÚóóÝ ƒ!ÝÔ . ÔÔ€ ÔÑ  ÑÒ  ÒÒ H ÒÑ\R AØ'\ÑÑ#€Xd#ÑÑ#€Xd#ÑÝ  Ý›ÓÓò òœÙ€€ÙÓ  ÓßR€#%"A1-j|` à. `€€@ÿRß›Þ ÞÌIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌEASTERN€SECTION€AT€KNOXVILLEÌÓ  ÓÌÌÌÓÓó óFIRST€AMERICAN€NATIONAL€BANK,à à)à àKNOX€CHANCERYÌà àà àà àà àà àà à)Ìà àPlaintiff/Appelleeà àà àà à)à àNO.€€03A01„9704„CH„00131Ìà àà àà àà àà àà à)Ìv.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)€€€€€à àHON.€€FREDERICK€D.€McDONALDÌJAMES€FITZGERALD€andà àà à)à àCHANCELLORÌERIC€M.€GEORGESON,à àà àà à)€€€€€à àÌà àà àà àà àà àà à)Ìà àDefendants/Appellantsà àà à)Ìà àà àà àà àà àà à)à àAFFIRMEDÌÌÌÌNeal€S.€Melnick€and€Lawrence€E.€Ault,€Knoxville,€for€Appellants.ÌCheryl€E.€Light,€Knoxville,€for€Appellee.ÌÌÌò òòòà@ àO€P€I€N€I€O€NÌÌÌó óóóà àà àà àà àà àà àà àINMAN,€Senior€JudgeÌÌÓÓà àThis€is€a€suit€on€a€promissory€note€executed€on€January€18,€1994€by€theÏdefendant€James€Fitzgerald€to€the€plaintiff.€€The€payment€of€this€note€wasÏguaranteed€by€the€defendant€Eric€M.€œGeorgeson,€who€executed€a€separateÏdocument.›€€Each€document€appears€to€be€facially€regular€and€routine.Ìà àThe€defendants€filed€a€joint€answer€asserting€a€failure€of€consideration€in€thatÏthe€proceeds€of€the€note€were€never€received€by€either€of€them.€€They€admitted€theÍexecution€and€delivery€of€the€promissory€note,€but€denied€the€execution€andÏdelivery€of€the€œguaranty,€while€later€admitting€its€execution€and€delivery.›Ìà àThe€Chancellor€sustained€the€complaint€in€all€respects€and€entered€aÏjudgment€against€both€defendants€in€accordance€with€the€provisions€of€theÏpromissory€note.€€The€defendants€appeal€and€present€for€review€the€followingÏissues:à àÌÓÓà0 àI.à8 àWhether€the€trial€court€erred€in€finding€that€authorized€advancesÏwere€made€on€the€subject€promissory€note.ÌÌà0 àII.à8 àWhether€the€trial€court€erred€by€admitting€œparol›€evidence€to€varyÏthe€terms€of€the€promissory€note€and€obligations€of€the€partiesÏwhere€the€appellee€failed€to€establish€any€authorized€advancesÏto€the€appellants€under€the€note.ÌÌà0 àIII.à8 àWhether€the€trial€court€erred€in€failing€to€apply€the€statute€ofÏfrauds€in€finding€the€appellants€liable€for€money€advances€to€œaÏ›à àthird€party,€œBlakley›€Management€Corporation,€when€noÏwritten€promise€to€do€so€exists.ÌÌà0 àIV.à8 àWhether€the€trial€court€erred€in€not€barring€recovery€on€the€basisÏthat€the€appellee€was€equitably€estopped€by€its€conduct€andÏnegligence.ÌÌÓÓà àOur€review€of€findings€of€fact€by€the€trial€court€is€òòde€novoóó€upon€the€record€ofÏthe€trial€court,€accompanied€by€a€presumption€of€the€correctness€of€the€findings,Ïunless€the€preponderance€of€the€evidence€is€otherwise.€òòTenn.€R.€App.€P.,€Rule€œ13óó(d).Ìò òà@ àIó ó›Ìà àIn€1989,€James€Fitzgerald€and€Eric€Georgeson€were€business€partners.€€TheÏpartnership€owned€several€properties€in€œChattanooga€and€Knoxville€›€includingÏproperty€commonly€known€as€the€œBlakley›€Hotel.€€On€December€3,€1989,€theyÏentered€into€a€Management€Agreement€with€Blakley€Management€Corporation€toÍmanage€and€oversee€the€operation€of€the€Blakley€Hotel€including€all€of€its€food€andÏbeverage€operations.Ìà àThe€Management€Agreement€provided€that€Joseph€Parisi€(hereinafterÏð ðParisiðð),€as€major€shareholder€of€Blakley€Management€Corporation,€would€beÏresponsible€for€hiring€staff,€maintaining€rooms€and€accurate€records,€paying€taxes,Ïcollecting€revenues,€paying€expenses€and€maintaining€the€physical€condition€of€theÏhotel.€€Parisi€would€receive€a€20€percent€interest€in€the€profits€for€his€managementÏservices.€€Blakley€Management€Corporation€would€base€its€operation€at€the€BlakleyÏHotel€and€pay€rental€for€the€space.€€Fifty€percent€of€net€profits€of€BlakleyÏManagement€Corporation€would€be€paid€to€the€partnership€of€Georgeson€andÏFitzgerald.Ìà àIn€January,€1990,€Parisi€approached€Dewitt€Ingram,€(hereinafter€ð ðIngramðð)€aÏloan€officer€at€FANB,€requesting€a€$25,000.€loan.€€Parisi€had€no€credit€history€norÏassets€sufficient€to€secure€the€loan.€€Subsequently,€Georgeson€and€FitzgeraldÏdiscussed€the€loan€with€Ingram€and€the€need€for€funds€to€equip€and€operate€theÏBlakley€Hotel.Ìà àIngram€had€known€Georgeson€and€Fitzgerald€for€some€years,€and€they€hadÏprior€business€dealings.€€Fitzgerald€is€currently€head€of€the€Real€Estate€FinanceÏDepartment€for€Credit€Lyonnaise,€a€New€York€bank,€and€has€worked€in€banking€forÏ20€years€including€international€finance€and€investments.€€Fitzgerald€first€came€toÏKnoxville€when€he€worked€for€the€Federal€Savings€and€Loan€Insurance€CorporationÏ(FSLIC).€€Financial€statements€were€required€for€the€loan€approval,€and€thoseÏstatements€were€submitted€to€Ingram€by€both€Fitzgerald€and€Georgeson.Ìà àThe€$25,000.€loan€was€made€to€Fitzgerald€on€January€18,€1990.€€Payment€ofÏit€was€guaranteed€by€Georgeson.€€The€purpose€of€the€loan€was€the€purchase€ofÏequipment€and€supplies.€€Fitzgerald€later€talked€with€Ingram€by€phone€requestingÏthat€draws€be€made€on€the€loan.€€A€phone€message€from€Fitzgerald€for€Ingram€wasÏtaken€by€Darlene€White,€a€commercial€loan€secretary,€and€this€message€reflected€aÏrequest€from€Fitzgerald€to€advance€$17,000.€to€the€Blakley€ManagementÏCorporation€account.Ìà àFANB€records€reflect€that€the€loan€proceeds€were€advanced€as€follows:Ïœ$17,000.›€was€deposited€on€January€24,€1990€to€the€Blakley€ManagementÏCorporation€account;€a€cashierððs€check€in€the€amount€of€$2,393.€was€issued€toÏWatkins€Motor€Lines€œper€instructions€on›€February€5,€1990;€and€the€balance€ofÏ$5,156.74€was€deposited€to€the€Blakley€Management€Corporation€account€onÏFebruary€5,€1990.€€The€Corporate€Resolution€on€file€at€FANB€for€the€BlakleyÏManagement€Corporation€also€dated€January€24,€1990€authorized€theÏestablishment€of€a€checking€account€with€Fitzgerald€and€Parisi€as€allowed€signers.€ÏAccordingly,€the€signature€card€dated€the€same€date€had€two€signatures,€those€ofÏFitzgerald€and€Parisi.Ìà àInterest€payments€were€made€on€the€note€by€Blakley€ManagementÏCorporation,€but€Ingram€contacted€Fitzgerald€and€Georgeson€to€advise€them€ifÏpayments€were€not€made€timely.€€When€interest€payments€ceased,€IngramÏdiscussed€with€the€Appellants€the€possibility€of€FANB€collateralizing€the€loan€orÏworking€out€the€loan€in€some€other€way.€€The€loan€remained€in€default€and€pastÏdue,€resulting€in€a€formal€demand€letter€being€sent€to€Fitzgerald€from€Ingram€onÍFebruary€10,€1992.Ìà àœÌÑ  Ñò òà@ àIIó óÌà àAll›€contracts€in€writing€and€signed€by€the€party€to€be€bound€are€prima€facieÏevidence€of€consideration,€òòTenn.€Code€Annóó.€ðð€47„50„103,€and€the€burden€ofÏovercoming€the€presumption€of€consideration€is€upon€the€Appellants.€€òòAtkins€v.ÏKirkpatrick,€óó82€S.W.2d€547,€552€(Tenn.€App.€1991),€citing€òòPinney€v.€Tarpley,óó€686ÏS.W.2d€574€(Tenn.€App.€1984).€€The€Appellants€claim€advances€were€notÏauthorized€and€deny€that€they€received€any€consideration€because€funds€wereÏadvanced€directly€to€suppliers€for€the€Blakley€Hotel€or€to€the€account€of€BlakleyÏManagement€Corporation.Ìà àThe€Chancellor€found:ÌÓÓÓ  Óà8 àà àThe€evidence€is€very€clear€that€the€money€that€was€beingÏborrowed€was€to€go€to€Mr.€Parisi€and€his€company€and€that,€in€fact,€itÏdid€go€there.€€There€is€evidence€tending€to€show€that€Mr.€FitzgeraldÏhad€some€part€in€some€of€the€advances,€but€that€really€is€not€a€matterÏmaking€much€difference€here€inasmuch€as€the€loan€moneys€wentÏwhere€they€were€intended€and€were€used€as€intended€in€Mr.€ParisiððsÏbusiness.ÌÌÓÓÓ  Óà àThe€Appellantsðð€argument€focuses€on€the€way€advances€were€made€and€whoÏrequested€advances,€with€little€or€no€attention€to€the€evidence€concerning€theÏpurpose€and€need€for€the€promissory€note€and€guaranty.€€What€was€contemplatedÏand€intended€by€the€parties€respecting€the€use€of€the€proceeds€when€they€enteredÏinto€the€contract€is€relevant€to€the€question€of€whether€the€Appellants€received€theÏconsideration€they€now€deny.Ìà àThe€Chancellor€found€that€the€method€of€advancing€money€was€notÏdeterminative€of€whether€consideration€was€given.€€Consideration€is€defined€asÏð ðeither€a€benefit€to€the€party€promising€or€a€prejudice€or€trouble€to€the€party€to€whomÏthe€promise€is€made.ðð€€òòDixon€v.€œManier›,€óó545€S.W.2d€948,€950€(Tenn.€App.€1976),Ïcitingòò€Johnson€v.€Central€National€Insurance€Co.,€óó356€S.W.2d€277€(Tenn.€App.Ï1976).€€Consideration€may€pass€to€a€third€party€and€consist€of€detriment€to€theÏpayee€for€the€benefit€to€a€third€party.€€òòThird€National€Bank€in€Nashville€v.€Lyons,óó€No.Ï01A01„9210„CH„00387,€1993€Tenn.€App.€LEXIS€192,€(Middle€Section,€March€17,Ï1993).€€It€is€not€necessary€that€all€or€any€of€the€consideration€of€a€note€pass€directlyÏto€the€maker.€€Ìà àIn€òòWalker€v.€First€State€Bank,€óó849€S.W.2d€337,€342€(Tenn.€App.€1992),€citingÏòòPalmer€v.€œDehn›,€óó198€S.W.2d€827,€828€(Tenn.€App.€1946),€this€Court€held€andÏreiterated€the€following€principle:ÌÓÓÓ  Óà8 àFor€there€to€be€a€consideration€in€a€contract€between€parties€to€theÏcontract€it€is€not€necessary€that€something€concrete€and€tangible€moveÏfrom€one€to€the€other.€€Any€benefit€to€one€and€detriment€to€the€otherÏmay€be€a€sufficient€consideration.ððÌà àÌÓÓÓ  Óà àThe€plaintiff€in€òòWalkeróó€contended€that€there€was€an€absence€or€lack€ofÏconsideration€for€her€note€and€trust€deed,€but€she€testified€that€she€realized€that€theÏpledging€of€her€interest€in€farm€property€was€necessary€as€additional€collateral€toÏsecure€the€debt€of€her€brother.€€The€Court€found€the€additional€collateral€was€aÏbenefit€to€the€bank,€and€an€extension€of€time€to€pay€the€debt€through€renewal€notesÏconstituted€sufficient€consideration€to€the€plaintiff.€€The€benefit€to€the€plaintiff€was€theÏextension€of€time€given€to€her€brother€to€pay€the€debt.Ìà àThe€consideration€to€the€Appellants€in€the€present€case€is€even€more€direct.€ÏAppellants€Fitzgerald€and€Georgeson€were€the€owners€of€the€Blakley€Hotel€inÏKnoxville.€€As€owners€of€this€property,€they€contracted€with€the€Blakley€ManagementÏCorporation€and€its€major€stockholder,€Joe€Parisi,€to€manage€and€oversee€theÏoperation€of€the€property€as€a€hotel€including€its€food€and€beverage€operations.€ÏParisi€was€responsible€for€hiring€staff,€paying€expenses€and€maintaining€theÏphysical€condition€of€the€hotel€owned€by€the€Appellants.€€Fifty€percent€of€net€profitsÏof€Blakley€Management€Corporation€were€to€be€paid€to€the€Appellants.€€BlakleyÏManagement€Corporation€operated€the€Blakley€Hotel€property€as€an€ongoingÏbusiness€concern€for€approximately€two€years.Ìà àIn€his€testimony€about€the€loan,€Fitzgerald€testified:ÌÓÓà àQ:à0 àYou€were€aware€from€your€conversations€with€Mr.€Ingram€that€JoeÏParisi€didnððt€have€the€credit€to€get€this€loan,€werenððt€you?ÌÌà0 àA:à0 àHe€told€me€that€Mr.€Parisi€on€his€own€would€not€be€able€to€secure€thisÏloan,€correct.ÌÌà0 àQ:à0 àDid€you€have€conversations€with€Dewitt€Ingram€about€this€loan€andÏabout€the€situation€and€how€funds€could€be€attained€to€operate€theÏhotel€and€restaurant?ÌÌà àA:à0 àWe€only€had€a€very€short€conversation.€€I€had€other€business€dealingsÏwith€him,€as€Iððve€already€testified,€at€Third€National€Bank.€€HeÏspecifically€asked€me€if€Rick€Georgeson€and€myself€would€co„sign€forÏa€$25,000.€loan€for€Joe€Parisi.€€We€didnððt€talk€about€what€it€would€beÏused€for.€€I€said,€Yes.ÌÌà àQ:à0 àYou€did€not€talk€about€what€it€was€going€to€be€used€for?ÌÌà àA:à0 àNo,€I€simply€assumed€„„I€trusted€Joe€Parisi.€€I€assumed€it€would€œgo›€intoÏBlakley€Management€Corp.ÌÌà àQ:à0 àAnd€it€did,€didnððt€it?ÌÌà àA:à0 àI€couldnððt€testify€to€that.€€I€have€no€knowledge€of€that.ÌÌà àQ:à0 àWell,€if€you€heard€testimony€today€that€deposits€were€made€into€theÏBlakley€Management€Corporation€account,€thatððs€what€you€understoodÏwould€be€done€with€the€money;€is€that€correct?ÌÌà àA:à0 àCorrect.ÌÌÓÓà àà àIngram,€the€loan€officer,€testified€regarding€the€purpose€of€the€loan€andÏhow€it€was€to€be€advanced:ÌÓÓà àQ:à0 àWhat€were€your€discussions€with€either€Mr.€Fitzgerald€or€Mr.ÏGeorgeson€regarding€what€was€to€be€done€with€the€proceeds€of€thisÏloan?ÌÌà àA:à0 àIt€was€a€$25,000.€loan,€and€it€was€to€be€there.€€And€when€they€calledÏme,€it€was€to€be€made€a€draw€on€or€Joey€could€draw€on€it€too.€€I€thinkÏthere€was€an€emergency€for€this.€€They€had€some€bakery€items€comingÏon€a€truck€or€something.€€I€donððt€remember€strictly,€but€it€was€some€kindÏof€„„€something€coming€in€by€a€trucking€company,€and€they€did€notÏhave€the€money€to€pay€for€it,€and€they€had€to€pay€for€some€type€ofÏequipment.ÌÌà àQ:à0 àDid€Jim€Fitzgerald€ever€tell€you€that€Joe€Parisi€was€authorized€to€makeÏdraws€on€this€note?ÌÌà àA:à0 àThey€understood€that€this€money€was€to€be€used,€and€Joey€had€theÏdiscretion€to€draw€on€it€and€put€it€in€„„€I€donððt€know€what€account€it€wasÏdeposited€in.€€It€was€some€restaurant€or€the€Blakley€House€Restaurant.€ÏI€donððt€have€that€in€front€of€me.ÌÌà àQ:à0 àDid€you€ever€talk€to€Jim€Fitzgerald€by€phone€after€this€loan€was€madeÏabout€advances€under€the€loan,€under€the€note?ÌÌà0 àA:à0 àMy€secretary€did,€and€I€did€too.€€There€were€several€different€drawÏrequests€made,€and€I€got€phone€calls€from€œJim›€to€advance€money.ÌÌÓÓà àIngram€also€testified€regarding€his€course€of€dealings€with€the€AppellantsÏwhen€payments€were€to€be€made:Ìà àQ:à0 àOkay.€€Do€you€know€who€made€the€interest€payments€on€this€note?ÌÓÓà àA:à0 àI€know€that€several€times€I€had€to€call€Joe,€and€he€couldnððt€make€them.€ÏAnd€finally€it€œgot›€down€to€the€end,€and€I€called€œJim›€and€talked€to€him,Ïand€they€offered€me€collateral€from€the€hotel€and€different€things€to€tryÏto€work€the€loan€out.ÌÌà0 àà0 àIððm€sure„„I€donððt€have€those€checks€in€front€of€me,€but€Iððm€sure€I€talkedÏto€Rick€and€Joe€several€times€about€the€interest€payments.€€And€I€donððtÏhave€the€checks€in€front€of€me,€and€itððs€hard€for€me€to€answer.€€But€IÏtalked€to€them€several€times€on€the€loan,€and€they€helped€me€eitherÏget€it€paid€or€seen€that€it€was€paid.ÌÌà àQ:à0 àSo€if€interest€payments€werenððt€made,€did€you€contact€Rick€GeorgesonÏand€Jim€Fitzgerald?ÌÌà àA:à0 àI€definitely€contacted€Jim€and€Rick€both.€€I€called€Jim€several€timesÏbefore€I€left€the€bank,€at€the€end,€about€these,€and€they€told€me€whatÏthey€would€do€to€work€it€out,€give€me€collateral€and€stuff.ÌÌÓÓà àThere€was€additional€testimony€from€Darlene€œWhite,›€secretary€to€œIngram,›€whoÏrecalled€taking€a€phone€message€from€Appellant€Fitzgerald€who€asked€thatÏ$17,000.€be€advanced€to€the€checking€account€for€Blakley€ManagementÏCorporation.€€This€phone€message€was€part€of€the€Bankððs€business€record.Ìà àThe€finding€of€the€Chancellor€that€advances€were€authorized€is€fullyÏsupported€by€the€preponderance€of€the€œevidence.Ìò òà@ àIIIó ó›Ìà àTurning€to€the€issue€of€whether€the€Chancellor€erred€in€admitting€parolÏevidence€respecting€the€intended€use€of€the€borrowed€funds€and€the€nature€of€theÏconsideration,€it€is€well€established€in€this€jurisdiction€that€while€parol€evidence€isÏnot€admissible€to€contradict€a€written€instrument,€nevertheless€parol€evidence€isÏadmissible€as€to€collateral€matters€not€varying€the€terms€of€the€writing€.€.€.€or€whenÏrepresentations€and€statements€are€made€as€inducements€to€the€contract,€and€formÏthe€basis€or€consideration€of€it.€€òòœHines›€v.€œWilcox›,óó€33€œS.W.›€914€(Tenn.€1896).Ìà àAppellants€argue€that€ð ðtermsðð€were€added€which€were€not€in€the€note,Ïincluding€that€no€purpose€is€given€for€the€note,€advancements€were€not€addressedÏand€Fitzgerald€gave€no€written€authority€to€anyone€to€request€draws.€€These€items€orÏquestions€were€not€specifically€mentioned€in€the€note.€€œThe›€Rule€allows€theÏadmission€of€parol€evidence€in€this€circumstance,€since€the€matters€addressed€areÏnot€inconsistent€with€the€written€document.€€òòSee,óó€òòœMcGannon›€v.€Farrell,€óó214€œS.W.›Ï432,€434€(Tenn.€1919).Ìà àœÌÌÌà àAs›€to€this,€the€Chancellor€found:ÌÓÓÓ  Óà8 àà àThe€terms€of€the€note€and€continuing€guaranty€cannot€be€variedÏby€oral€testimony€as€to€that€some€other€understanding€or€agreement€atÏthe€time€of€execution€of€the€document€might€have€been.€€The€law€isÏextremely€clear€on€that€point€and€leaves€us,€so€that€we€must€reallyÏdisregard€contentions€about€who€else€was€supposed€to€sign€the€note,Ïor€who€else€was€supposed€to€be€obligated€on€it.ÌÌÓÓÓ  Óà àWe€agree€with€this€finding.Ìà àœThe›€Appellant€Fitzgerald€is€a€New€York€banker€currently€serving€as€head€ofÏReal€Estate€for€Credit€Lyonnaise€with€20€years€of€experience€in€the€banking€industryÏincluding€international€finance€and€investments.€€He€is€a€graduate€of€St.€JohnððsÏUniversity€and€œcame›€to€Knoxville€to€liquidate€various€properties€for€the€FSLIC.€€HeÏthen€purchased€several€properties€in€the€Knoxville€area€and€went€into€business€withÏAppellant€Georgeson.€€He€now€asserts€that€the€note€he€signed€did€not€contain€theÏprovisions€he€negotiated€and€œagreed›€to€including€the€fact€that€there€were€to€be€otherÍmakers.€€While€he€admits€the€execution€of€the€note€for€$25,000.€his€argument€thatÏhe€did€not€follow„up€with€the€Bank€about€the€proceeds€of€the€note€and€that€he€knewÏnothing€of€the€advances€under€the€note€is€unavailing.€€Ìà àThe€Chancellor€found€ample€evidence€that€the€understanding€of€the€partiesÏwith€regard€to€these€documents€was€not€inconsistent€with€the€written€terms€and€thatÏthe€contemplated€and€acknowledged€consideration€was€given.€€We€agree€with€thisÏœfinding.€€The€Chancellor€did€not€vary€the€terms€of€the€documents.›ÌÓ  ÓàH@ààH@©©àò òIVó óÌÓ  Óà àThere€is€no€evidence€that€the€plaintiff€loaned€money€to€anyone€other€thanÏAppellant€œFitzgerald,€and€the›€fact€that€he€directed€those€funds€be€utilized€for€theÏoperation€of€the€Blakley€Hotel€through€its€manager€does€not€change€his€obligation.€ÏConsideration€can€flow€to€a€third€party€if€that€is€œwhat›€the€obligor€directs€it€to€do.€ÏòòWalker,€supra.Ìà àóóThe€Statute€of€Frauds€has€no€application.€€The€Chancellor€found:ÌÓÓÓ  Óà8 àà àœMr.›€Fitzgerald€contends€that€Mr.€Parisi€was€supposed€to€be€aÏco„signor€on€the€note€and€that€Mr.€Fitzgerald€would€not€have€signedÏhad€he€known€that€Mr.€Parisi€was€not€signing.€€Essentially€that€defenseÏrequires€a€disregard€of€the€note€itself,€the€note€that€shows€the€nameÏtyped€in€of€Mr.€Fitzgerald€and€below€that€is€his€signature.€€Below€thatÏfurther€is€the€typed€indication€that€Defendant€Georgeson€guaranteesÏthe€note.ÌÌà8 àà àThere€is€no€indication€on€either€the€note€or€continuing€guarantyÏthat€Mr.€Parisi€or€his€corporation€were€in€any€way€directly€obligated€onÏthe€note.ÌÌÓÓÓ  Óà àWe€agree€with€this€œfinding.Ìò òà@ àVó ó›Ìà àLastly,€the€appellants€argue€that€the€Chancellor€should€have€applied€theÏdoctrine€of€equitable€estoppel€to€bar€the€plaintiffððs€recovery€because€the€BankÏallegedly€did€not€honor€œits€›promise€to€advance€the€proceeds€to€him€and€therebyÏprejudiced€œhim,›€as€he€relied€on€that€promise€in€the€signing€of€the€promissory€note.Ìà àœEstoppels›€are€not€favored,€and€the€burden€is€upon€the€party€seeking€toÏinvoke€the€estoppel€to€prove€each€and€every€element€thereof.€€òòThird€National€BankÏv.€Capital€Records,óó€445€S.W.2d€476€(Tenn.€App.€1969).€€Estoppel€requires,€at€aÏœminimum:›€(1)€reliance€upon€the€statement€or€action€of€another€without€theÏopportunity€to€know€the€truth,€and€(2)€action€based€on€that€reliance€which€results€inÏdetriment€to€the€actor.€€òòW.€F.€œHolt›€Co.€v.€A€&€E€Electric€Co.,€Inc.,€óó665€S.W.2d€722,€735Ï(Tenn.€App.€1983),€citing€òòWarren€Brothers€Co.€v.€Metropolitan€Government,€óó540ÏS.W.2d€243,€247€(Tenn.€App.€1976).€€For€equitable€estoppel,€the€party€must€haveÏtaken€actions€ð ðcalculated€to€convey€the€impression€that€the€facts€are€otherwise€than,Ïand€inconsistent€with,€those€which€the€party€subsequently€attempts€to€assert.ðð€€òòId.,óóÏciting€òòœMcClure›€v.€Wade,€óó235€S.W.2d€835,€842€(Tenn.€App.€1950).Ìà àœAs€found€by€the€Chancellor,€and€as€heretofore€noted,€the›€loan€at€œissue€was›Ïmade€to€Fitzgerald.€€The€testimony€was€clear€that€the€Bank€and€Fitzgerald€intendedÏthe€proceeds€to€be€utilized€for€the€operation€of€the€Blakley€Hotel.€€EquitableÏestoppel€is€not€available€as€a€defense€to€the€Appellants€when€there€œhave›€been€noÏsubsequent€inconsistent€assertions€made€by€the€Bank.€€The€evidence€œis€clear›€thatÏthe€Bank€honored€its€obligation€and€representations€to€Fitzgerald€by€making€theÏadvances€he€bargained€for€when€he€obtained€the€œloan.›Ìà àWe€agree€with€the€Chancellor€that€the€evidence€reveals€no€reason€why€theÏplaintiff€should€be€equitably€estopped€from€enforcing€the€promissory€note.Ìà àThe€judgment€is€affirmed€and€the€case€is€remanded€for€all€appropriateÏpurposes.€€Costs€are€assessed€to€the€appellants€and€their€œsureties€for€whichÏexecution€may€issue€if€necessary.›ÌÌÓÓà àà àà àà àà àà à___________________________________Ìà àà àà àà àà àà àWilliam€H.€Inman,€Senior€œJudge›ÌÌÌCONCUR:ÌÌœ›ÌÔ% € Ôœ›œ______________________________ÌHerschel€P.€Franks,€JudgeÌÌÌÌ______________________________ÌDon€T.€McMurray,€JudgeÔ% € Ô›