Young Men's Christian Ass'n v. Ritter

Citations

• 90 Kan. 332
• 133 P. 894
• 1913 Kan. LEXIS 214

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Building Contract — Payments to Contractor — “Pinal Payment ” Construed. A contract for the erection of a building contained a clause which, after reciting the whole sum to he paid for work and materials, provided “that such sum shall be paid by the owners to the contractors, in current funds, and only upon the certificates of the architects as follows: on or before the first of every month the architects shall make written estimates of all work and material furnished on the contract during the preceding thirty days and eighty per cent of same shall be paid the contractors by the owners when presented. The final payment shall be made within ten days after the completion of the work included in this contract, and all payments shall be due when certificates for the same are issued.” Held, that “the final payment” referred to the twenty per cent of the amount of the estimates after the eighty per cent had been paid.</p> <p>2. -Indemnity Bond — Paitare to Retain Required Percentage — Surety Released. A bond of indemnity was executed by a surety company against pecuniary loss resulting from the failure of a contractor to comply with the terms of a building contract. The bond referred to the contract and contained a condition that no liability should attach to the surety unless the owner should give notice to and obtain the consent of the surety before making the final payment ■ provided for in the contract. Held, that the failure to retain the required percentage discharged the surety to the extent of the premature payments.</p>