O'Neill v. Title Guaranty & Trust Co.

Citations

• 191 F. 570
• 113 C.C.A. 211
• 1911 U.S. App. LEXIS 4966

Syllabus

<p>Principal and Surety (§ 117*) — Surety for Building Contractor — Discharge — Failure of Owner to Retain Agreed Percentage of Price.</p> <p>Dnder a building contract providing for monthly payments of 90 per cent, of the value of the labor and material in place, and that the owner shall retain the remainder of the price until completion and acceptance of the building, the measure of value on which the partial payments are to be estimated is the contract price for the completed building, and a surety for the contractor, entitled by the terms of his bond in case of default by the contractor to the benefit of all retained percentages, is discharged if the owner has failed to retain at least 10 per cent, of the contract price.</p> <p>[Ed. Note. — For other cases, see Principal and Surety, Cent. Dig. §§ 283-285; Dec. Dig. § 117.*</p> <p>Discharge of surety on'building contract by change in obligation or duty of principal, see note to United States v. Walsh, 52 C. C. A. 427.]</p>