Tarentum Realty Co. v. McClure

Citations

• 230 Pa. 266
• 79 A. 551
• 1911 Pa. LEXIS 600

Syllabus

<p>Contract — Bond—Conditions—Notice—Waiver—Principal and agent.</p> <p>1. In an action against a surety on a bond taken to insure the performance of a building contract, the defense was that the obligee, disregarding the conditions of the bond, had neglected to give the surety, notice of the contractor’s default in not finishing the building at the time specified, and had not retained the agreed percentage of the contract price. The bond was executed only seven days before the time originally agreed upon for the completion of the building, and was conditioned for one year, and there was evidence of a subsequent course of dealing showing that neither party insisted upon completion at the time specified. There was other evidence that the surety had advised the use of the retained percentage for the settlement of unpaid bills to avoid threatened liens, and that such payment was made with the knowledge and consent of an alleged agent of the company. Held, that the question of the surety’s liability was properly for the jury.</p> <p>2. Bonds are presumptively intended to secure losses sustained after and not before their execution, but such presumption may be overcome if the facts show that past as well as future defaults were intended to be covered by the bond.</p>