Sumner K. Prescott Co. v. Franklin Tool Works

Citations

• 117 Wash. 283
• 201 P. 308
• 1921 Wash. LEXIS 1060

Syllabus

<p>Sales (92) — Contract—Goods to be Manufactured — Transfer of Title. The general rule that no title vests in the purchaser under a contract for the manufacture of an article not existing in specie at the time of making the contract is not altered by the fact that the purchaser has a right to inspect all material and pass upon workmanship before installation, or is required to make payments as the work progresses, or that provision is made for a lien in favor of the manufacturer in the event of default in final payment for the article.</p> <p>Liens (5) — Chattel Liens — Right to Lien — Assignment of Debt or Claim. A corporation which has a contract for the manufacture of machinery parts has a right of lien thereon, though the actual work is done by a closely affiliated corporation, where there was no transfer of the contract by assignment or novation.</p> <p>Novation (2) — Nature and Elements — Substitution of Obligation Between Same Parties. Novation is a contractual relation based upon a new contract by all the parties interested, and must be founded upon mutual agreement, proper consideration and a valid prior obligation to be displaced.</p> <p>Liens (5) — Chattel Liens — Right to Lien — Possession of Property. Under Laws 1917, p. 229, one furnishing material to be used in the construction of an article is entitled to a lien on the manufactured article, though he never had possession of the latter.</p> <p>Same (5) — Proceedings to Perfect — Notice op Lien — Time for Filing. Under Laws 1917, p. 229, § 2, providing that lien claims for work or materials on chattels must be filed “within sixty days from the date of delivery of such chattel to the owner,” the date of last delivery of material fixes the time for beginning of the running of the period of limitation.</p> <p>Same (6) — Enforcement—Defense—Payment—Evidence. The fact that one liable for the cost of castings for an engine accepted a trade acceptance which was not paid would not operate as a payment of the