Estate of Rapp v. Phœnix Insurance

Citations

• 113 Ill. 390
• 1885 Ill. LEXIS 707

Syllabus

<p>1. Consideration—of its sufficiency—as to a bond of an agent to his principal. A bond given by an agent of an insurance company, with surety, in the penal sum of $1000, conditioned that the agent shall promptly pay to the company moneys received by him from time to time, and well and truly perform all the duties of his agency as long as he officiates as such, and shall deliver to his successor, or to such person as the company may direct, all property which he may receive and hold when his agency terminates, discloses on its face a sufficient consideration to support the undertaking of the obligors so long as the agency continues, and is not similar to a guaranty on the part of the surety to be responsible for future advances. Such an obligation becomes binding immediately upon its execution and delivery.</p> <p>2. Surety—suretyship as to bond given by an agent to his principal— distinguished from, an ordinary guaranty as to future admances. The undertaking of a surety in a bond given by his principal for the faithful discharge of his duties as agent of an insurance company, is distinguishable from that of a guaranty of payment of future advances. In the latter, the only consideration to uphold the guarantor’s undertaking is an advance or credit given the party for whom the guaranty is given, and no liability arises until such an advance is made, and the undertaking may be revoked at any time before advances are made on its faith; while in the former, the appointment of the agent with power to act and transact business for the obligee, is a present consideration, which renders the surety’s undertaking binding immediately. .</p> <p>3. Same—whether contract terminated by the death of the surety, as to subsequent dealings. The obligation of the surety in a bond given by a party to procure his appointment as an agent of an insurance company, conditioned for the faithful discharge of his duties as agent, and the payment of all moneys of the principal coming to his han