Parsons v. Pacific Surety Co.

Citations

• 69 Wash. 595
• 125 P. 954
• 1912 Wash. LEXIS 960

Syllabus

<p>Pbincipal and Surety — Bonds — Building Contract—Conditions—-Waiver. Stipulations in a surety bond guaranteeing a building contract that the owner -should give immediate notice in writing to the president of the surety company at its principal office of any defaults by the contractor in the performance of the work, and that the owner should retain a certain percentage of the amounts due the contractor, are modified and waived, where, upon the contractor’s inability to pay the materialmen out of estimates certified by the architect, it was agreed that the owners should pay all claims approved by the surety company, and this was done on the written approval of the company’s resident attorney in fact, he having authority to represent the surety company.</p> <p>Same—Waiver by Agent—Authority. It sufficiently appears that a resident attorney in fact for a surety company had authority to waive conditions in an indemnity bond, where he was its accredited representative in that city and executed the bond in the name of the company, and his general authority was not questioned except by mere denials in the pleadings, no evidence being offered thereon by the defendant.</p> <p>Same—Contractor’s Bond—Liability — Demurrage Charges— Conditions. Failure to promptly notify a surety company of defaults by a contractor in the performance of a building contract, as required by stipulations in the bond, relieves the surety company from liability for demurrage charges on failure to complete the building on time.</p>