Home Insurance Co. of New York v. Favorite

Citations

• 46 Ill. 263

Syllabus

<p>1. Contracts—interpretation. Where, a contract is executed which refers to and makes the conditions of another instrument a part of it, the two will be construed together as the agreement of the parties.</p> <p>2. Same—pleadings—demurrer. If a suit is brought upon a contract which recites that it is subject to the conditions of another instrument, the failure to set out the terms and conditions of the latter in the declaration, and an averment of compliance therewith, or an excuse for non-compliance, should be taken advantage of by demurrer, and not by plea.</p> <p>3. If a defendant sets up as a defense in his pleas, the conditions of an instrument referred to in the contract sued on, and avers a breach of the conditions, the plaintiff should, if he desires to raise the question as to whether the conditions form a part of the contract sued on, demur to the pleas, and not traverse them.</p> <p>4. Where a defendant sets up conditions to, and a breach thereof, as á defense to an action brought upon a contract, and the plaintiff replies to the pleas, traversing the same, it is an admission that the facts set forth in the pleas constitute a defense, and it would be error to refuse the defendant permission to prove the truth of his pleas:</p> <p>6. Same—how far usage governs in their construction. To some extent at least, surrounding circumstances aid in the interpretation of all agreements and written contracts. It is only by a knowledge of such things, that the full force of the language used can be apprehended.</p> <p>6. Where a contract is entered into, the parties are supposed to have reference to the known usage and customs which enter into and govern the business or subject matter to which it relates, unless such presumption is rebutted by the agreement itself.</p> <p>1. Where a contract of insurance refers to a policy, which both parties knew had no existence, to define the conditions Of the contract, and where it is apparent that both understood that the agree