Monro v. National Surety Co.

Citations

• 47 Wash. 488
• 92 P. 280
• 1907 Wash. LEXIS 793

Syllabus

<p>Contracts — Consideration — Effect of Seal — Bonds. In an action upon an indemnity bond under seal, a nonsuit cannot be sustained for mere failure to prove a consideration, since the seal imports a consideration notwithstanding Bal. Code, § 4523, abolishing the use of private seals.</p> <p>Principal and Surety—Discharge of Surety—Premature Payments. Premature payments or advances, of a part of installments falling due to a contractor, do not discharge a bonding company which was surety on the building bond, where the contractor shortly became entitled to the payments, which were then deducted from the amounts due him, and the payments could not have operated to the prejudice of the bonding company.</p> <p>Same—Notice of Default—Delay in Giving—Effect. Where a building was to be completed September 15, and the first notice of default to the surety company was given November 22, the delay in giving notice releases the surety only as to claims for demurrage or failure to complete the building on time, and not as to damages arising from lien claims.</p> <p>Same—Time for Bringing Action—Limitations. Where an indemnity bond required action to be brought within six months after the time fixed in the contract for the completion of the work, which was September 15, 1905, an action commenced March 12, 1906, is within time.</p>