Wheeler, Osgood & Co. v. Everett Land Co.

Citations

• 14 Wash. 630
• 45 P. 316
• 1896 Wash. LEXIS 423

Syllabus

<p>CORPORATIONS — CONTRACT OP SURETYSHIP — CONSENT OP DIRECTORS — PRINCIPAL AND SURETY — ESTOPPEL — CONTRACTOR’S BOND.</p> <p>A lumber company which is empowered by its charter to carry on the manufacture and sale of lumber in its various forms, including everything connected with the manufacture and sale of lumber, and to do anything and all kinds' of business allowed to corporations by the laws of the state, is authorized to become surety upon the bond of a contractor to whom it furnishes building material, when such is the custom of manufacturers of lumber in the same locality.</p> <p>The fact that a bond has been executed by a corporation without the direct authority of a resolution of its board of trustees will not invalidate the bond, when it appears that a majority of the trustees were in consultation about it prior to its execution and consented thereto.</p> <p>A surety upon a building contractor’s bond is not released from liability by reason of alterations in the specifications after the execution of the bond, when the bond referred to the specifications which in terms permitted the making of alterations, and when the surety, with knowledge of the proposed changes, agreed to furnish the necessary mill work therefor.</p> <p>The provision in a building bond requiring the contractor to furnish the materials for the building must be construed as meaning that payment therefor is to be made by himself and not by the obligee, and, upon his failure to fulfill the terms of the bond in that respect, there is such a breach as warrants action against his surety.</p>