Zeigler v. Hallahan

Citations

• 131 F. 205
• 66 C.C.A. 1
• 1904 U.S. App. LEXIS 4279

Syllabus

<p>1. Principal and Surety — Discharge of Surety — Alteration of Contract.</p> <p>Where defendant became surety for the performance by a tenant of the covenants of a lease for 10 years, which bound the tenant to keep and pay rent for the premises, and, at the expiration of the term, deliver them in good condition, a modification of the contract before the tenant took possession, without the knowledge or consent of defendant, by the insertion of a provision that, in the event of the total or partial destruction of the premises by fire or other casualty, rendering the same untenantable, the lease from such time should become void and should be surrendered to the lessor, constituted a material alteration, which operated to discharge defendant from liability.</p> <p>2. Same — Effect of Alteration.</p> <p>In determining whether a surety is discharged by an alteration of the principal contract without his consent, the question is not whether the change was or could be prejudicial to him, but whether it effected a material alteration of the agreement to which his undertaking of surety-ship related; and, if it did, he is discharged, even though the change may have been beneficial to him.</p> <p>3. Same — Contract of Suretyship — Recital of Consideration.</p> <p>The rule as to the discharge of a surety by an alteration of the principal contract without his consent is not affected by the fact that his undertaking recites that it was made by him for a valuable consideration.</p>