Crook, Horner & Co. v. Baltimore & Ohio Railroad

Citations

• 80 Md. 338
• 30 A. 701
• 1894 Md. LEXIS 124

Syllabus

<p>Warranty of an Ice Machine— Waiver of Strict Performance — Recoupment — Receivers’ Certificates — Novation.</p> <p>Where the contract for the purchase of a certain machine specifies what it shall be capable of performing, and the maker agrees to run the same for a number of days after completion to demonstrate its efficacy, such stipulations constitute a warranty which is not waived by use of the machine, and the damages sustained by a breach of the warranty may be recouped in a suit by the seller for the price.</p> <p>In such case, the sale of the machine by a trustee under a mortgage executed by the buyer of all of its property is not such an acceptance of the machine as excuses the seller from a performance of his con- ' tract, or entitles him to recover the contract price.</p> <p>Where one party agrees to perform certain work upon machinery, and the plaintiff, with the concurrence of all the parties, agrees to complete the work according to that contract mid be entitled to the payment promised the original party, the plaintiff’s rights and liabilities are the same as those of the original contractor. .</p> <p>A contract for a certain machine, warranted to be capable of doing specified work, was made by A. with the Receiver of a corporation ; and subsequently Receiver’s certificates of indebtedness to the amount of the contract price were issued, upon the faith of a guaranty by the plaintiff to perform A.s’ contract. The machine was not put in running order according to the contract, and was sold under a decree. Held, that the plaintiff was not entitled to enforce payment of the' certificates, since the condition upon which they were issued was not performed.</p>