Fels & Co. v. Massachusetts Bonding & Insurance

Citations

• 48 Pa. Super. 27
• 1911 Pa. Super. LEXIS 331

Syllabus

<p>Principal and surety — Building contract — Retained percentages — Anticipatory payment — Release of surety — Surety companies.</p> <p>1. Where a building contract provides that a certain amount shall be retained out of weekly payments to the contractor until the work is completed, anticipatory payments of such amounts by failure to retain them each week, will release the surety of the contractor; and this is the case even though the surety may be a corporation .organized to go on surety bonds for profit.</p> <p>2. A surety upon payment of the claim is entitled to the securities held by the creditor; so that even if the surety were not completely relieved by anticipatory payments, he would be entitled at least to a credit to the aggregate amount of such payments made.</p>