Rafferty was the principal shareholder in Continental Corporation, and, as a result, he received the lion's share of Continental Corporation's dividends. Continental Corporation was anxious to close an important deal for iron ore products to use in its business.
A written contract was on the desk of Stage Corporation for the sale of the iron ore to Continental Corporation. Stage Corporation, however, was cautious about signing the contract, and it did not sign until Rafferty called Stage Corporation on the telephone and stated that if Continental Corporation did not pay for the ore, he would pay.
Business reversals struck Continental Corporation, and it failed. Stage Corporation sued Rafferty. What defense, if any, has Rafferty?