United States ex rel. Schumacker v. McIntyre

Citations

• 111 F. 590
• 1901 U.S. App. LEXIS 4983

Syllabus

<p>1. Contracts—Construction.</p> <p>The principal defendant had a contract with the United States for the erection of a government building, and contracted with one R. to furnish the stone; the contract giving iiim the right, on R.’s default, to take possession of the quarry and complete the contract at R.’s expense. R., not having sufficient money to open and operate his quarry, borrowed from plaintiff, giving his note, secured by an assignment of liis interest in the contract. Afterwards a tripartite agreement was made, by which defendant was to pay to plaintiff all sums due R. under his contract until the note was paid, plaintiff was given the right to complete the contract in case of R.’s default, and it was further agreed that, in case defendant took possession under the terms of the original contract, he should account to plaintiff for any profits which might become due to R. to the amount of the note. R. was unable to provide die stone as required, and be and plaintiff united in a proposition to defendant to take possession of tbe quarry and produce the stone as their agent, but without exxiense to them or the creation of any debts for which they should be liable. This offer defendant accepted, and lie produced the stone to complete the contract, but at an expense largely exceeding the contract price. Held that, while his entering upon the work as agent for R. relieved the latter from liability under the original contract for the loss, it did not render defendant liable to plaintiff; it not appearing that the amount expended by him in completing the contract was excessive, but that his only obligation, under all the agreements construed together, was to account to plaintiff for any profit which might accrue to the benefit of R. under the original contract.</p> <p>2. Principal and Surety—Release of Surety by Change in Contract of Principal.</p> <p>Any change in a contract for the performance of which a surety is bound, mad.e without his consent, will operate