Burlington Insurance v. Johnson

Citations

• 120 Ill. 622

Syllabus

<p>1. Surety—liability, strictly construed. The undertaking of a surety is to be strictly construed, and his liability will not be extended beyond the precise words of his agreement, by implication or construction.</p> <p>2. Same—measure of liability limited to terms of the contract. Where a party gives a bond, with sureties, conditioned for his faithful performance of a written contract, that contract will fix the measure of the sureties’ liability; and they will not be liable for the default of their principal to perform any duty or obligation arising out of a contract, or otherwise, not fairly within the provisions of the written contract the bond was given to secure.</p> <p>3. SAME—surety on bond of insurance agent—extent of his liability. An insurance agent entered into a written contract with an insurance company for carrying on the business of the company, and at the same time gave a bond, with sureties, to the company, to secure his faithful performance of the contract. Under the contract, the company was not required to advance any moneys to the agent for any purpose, nor did the contract contain any covenant that the agent should repay any moneys advanced to him: Held, that the sureties were not liable on the .bond for any moneys advanced to the agent, their principal, to enable him to prosecute his business for the company.</p>