Hall v. Lincoln Savings & Trust Co.

Citations

• 220 Pa. 485
• 69 A. 994
• 1908 Pa. LEXIS 803

Syllabus

<p>Statute of frauds — Guaranty—Contract not within the statute — Fund in hands of guarantor.</p> <p>If a special promise is made by the surety of a public contractor to a subcontractor, to see the latter paid for the performance of work which would be in relief of the obligation of the surety upon its prior bond, and if this payment is to be made from a fund assigned to, and hold by the surety for the payment of subcontractors, the promise does not fall within the statute of frauds.</p> <p>In such a case if the surety saw fit to disburse the amount for other purposes, in disregard of its promise to the subcontractor, that is its own affair, and it is not thereby relieved from liability to the subcontractor.</p>