Bangor Peerless Slate Co. v. Bangorvein Slate Co.

Citations

• 270 Pa. 161
• 113 A. 190
• 1921 Pa. LEXIS 349

Syllabus

<p>Lease—Slate quarry lease — Relief from, minimum, royalties—■ Covenant as to business depression—Nonessential business—Contract—Construction—Written instrument. -</p> <p>1. In construing a contract the primary rule is to ascertain and give effect to the intention of the parties and in arriving at such intention, where the language is doubtful or susceptible of more than one construction, the court may consider the nature and situation of the subject-matter and the apparent purpose or object in making the contract, in the form in which it was made, or of using a particular expression or sentence.</p> <p>2. Where a slate quarry lease provides that the lessee shall be relieved from the performance of his covenants, including payment of minimum royalties, if “there should be a widfe-spread business depression affecting not only the slate trade in Northampton County, but the business of the United States generally, to such a degree that trade conditions will not properly permit compliance with the terms and provisions of this lease,” the court should construe the lease as relieving the lessee, if the general trade conditions in the slate industry were such as to prevent the production and sale of slate products at a profit.</p> <p>3. The facts that the carrying on of a nonessential business at a profit during the great war, was practically impossible, though other trades of the country generally were prosperous, was std> ficient to excuse payment of royalties under the lease.</p>