Turner Concrete Steel Co. v. Chester Construction & Contracting Co.

Citations

• 271 Pa. 205
• 114 A. 780
• 1921 Pa. LEXIS 482

Syllabus

<p>Contracts — Construction—Payment—Failure to pay installments —Disputed items — Rescission of contract — Case for jury — Instructions — Appeals.</p> <p>1. In contracts, such as building contracts, where the work is spread over a considerable period of time, and large sums of money must necessarily be expended by the contractor, and payments are based on the amount of work performed, the covenant to perform is dependent on the covenant to pay. A failure to liquidate installments as they come due may justify the rescission of the contract and discontinuance of the work.</p> <p>2. But in a case where a contractor lets out a portion of the contract to a subcontractor, and the contractor has substantially complied with the contract to pay, and in good faith has liquidated the sum which he believes to be due, the subcontractor is not justified in abandoning the operation.</p> <p>3. Where the subcontractor, on receiving a large gum, which the contractor insisted was the entire halanee due on an installment, stops all work within a few hours, without further notice or demand, and six days later declines to make a statement for verification, although immediate liquidation of any charge unpaid was promised, the question whether the offer to then pay was reasonable, is for the jury, even if there was no real dispute as to the balance.</p> <p>4. Where, in such case, a verdict .is for defendant, the correctness of the instruction as to the measure of damages is immaterial.</p>