United States v. Freel

Citations

• 92 F. 299
• 1899 U.S. App. LEXIS 2968

Syllabus

<p>1. Principal and Surety — Release op Surety — Alteration oe Contract.</p> <p>Where the release of a contractor’s surety from the obligation of a building contract on account of subsequent changes therein, without his consent, is involved, the true meaning and intent of the contract should he ascertained according to usual rules of construction; but, when the expressed intention of the parties has been determined, the obligation of the surety is striciissimi juris, from which he is discharged by any alteration of the substantial terms of the contract, whether the same be harmful or beneficial to him. Where the contract authorizes the parties to enter into auxiliary contracts for alterations of the work from that shown in the plans and specifications, without invalidating the primary contract, the parties may stipulate, without releasing the surety, for such enlargement or extension of the work as, in nature, magnitude, and expense, would be consistent with, and bear a reasonable and subsidiary relation to, the work first undertaken.</p> <p>2. Same.</p> <p>Under such a provision, the alteration of the plans and specifications of a contract for the construction of a dry dock for the United States, in. consideration of $612,000, so that its length should he 670 rather than 600 feet, with an increased payment of $45,566, and an extension of the time of performance for three months, was within the contemplation of the parties and sureties to the original contract, and the latter were not released thereby. But a supplemental contract changing the location of the entire dry dock from the water side, as provided in the initial contract, to a location 64 feet inland, and requiring the contractor to make all necessary excavations and connections with the water at an in.creased payment of $5,063.18, and with an increased time for performance, released the sureties, inasmuch as all consent of the sureties anticipating changes in the contract related to alterations in the atta