Tarentum Water Co. v. Borough

Citations

• 230 Pa. 148
• 79 A. 402
• 1911 Pa. LEXIS 579

Syllabus

<p>Corporations — Water companies — Boroughs — Contract—Conditional contract.</p> <p>1. Where a water company, in pursuance of the power conferred upon it by the legislature and without any inducement by the authorities of 'a borough, enters upon the borough’s streets and proceeds to furnish water generally to the public, and subsequently the borough enters mto a-qontract with the company by which the latter agrees to furnish water for municipal purposes, and agrees, as a consideration for the privilege of supplying such water, not to charge the inhabitants of the borough any excess over the rates it had theretofore been charging, such a contract does not preclude the borough from subsequently furnishing its own supply of water for its inhabitants.</p> <p>2. Ordinarily it is to be assumed when a contract expresses distinctly the common purpose of the parties that it expresses the whole purpose. The proper rule in such case would refer whatever stipulations the contract contains to the purpose of the contract as defined, and construe it accordingly.</p>