National Surety Co. v. Hall-Miller Decorating Co.

Citations

• 104 Miss. 626
• 61 So. 700

Syllabus

<p>1. Public Buildings. Contracts of trustees. Ultra vires. Bonds of indemnity. Consideration. Beneficiaries. Corporations. Defenses.</p> <p>In all eases public boards, when given the power to contract for the doing of public work, have the power to require the contractor to give bond for the protection of subcontractors and others furnishing material and labor for the building, as such bond supplies the place of the mechanics’ lien law, renders the laborer and materialman safe, prevents the abandonment of the work, and is thus of the highest benefit to the state.</p> <p>2. Same.</p> <p>Where as one of the conditions of the letting of the contract for a public work, and as one of the considerations thereof, the board of trustees of a public institution exacted a bond to insure the payment of the subcontractors and materialmen, this was not an unreasonable thing to do and it required nothing of the contractors which the law did not require it to do, except to obtain some one to insure the performance of a plain, legal and moral duty.</p> <p>3. Same.</p> <p>In such case the giving of a bond by the contractor to secure the subcontractors, materialmen and laborers was a part of the consideration which enabled the contractor to procure the contract and, it being within the power of the board of trustees to require such bond, it inures to the benefit of all persons named therein.</p> <p>4. Cobbobations. Ultra vires as a defense.</p> <p>The doctrine of ultra vires, when invoked for or against a corporation, should not be allowed to prevail where it would defeat the ends of justice or work a legal wrong.</p>