Harton v. Hildebrand

Citations

• 230 Pa. 335
• 79 A. 571
• 1911 Pa. LEXIS 612

Syllabus

<p>Contracts — Building contracts — Right to rescind — Action against transferee — Equity—Injunction.</p> <p>1. A building contract provided that the buildings contracted for should be built by a certain date at a price stated, and that a certain percentage of the price should be paid on an estimate of the amount of wort as the buildings progressed. After some of the houses had been erected an estimate of the work done was presented to the owner and approved by him, but not paid. The owner also owed the contractor a large sum due on another building contract. By reason of mortgages, judgments and mechanics’ liens filed against the properties, the contractor was without security for the amount due on either contract. At this time the owner conveyed the property to a third party. No offer was made then, or at any other time to pay the contractor the balance due him. The third party notified the contractor to go on with the work. Held, that the contractor was justified in refusing to go on with the work when his percentage was not paid, and in rescinding the contract after notice had been served upon him by the third party without tender of payment.</p> <p>2. In such a case where it appears that the third party took the property subject to all legal claims for labor and materials furnished in and about the erection of the houses, the contractor has the right to assert his claim for work done against such third party and to have the latter restrained from selling the property until the debt should be paid.</p>