Surety Obligation Limited to Executed Portion of Contract
Synthèse Legislator
Généré par l'IAA property owner, having contracted for construction work that was subsequently abandoned by the contractor before completion, sued the contractor's surety, demanding that the surety fulfill the remaining obligations or pay damages, but the appellate court dismissed the claim, reasoning that the surety's undertaking only guaranteed the execution of the contractor's initial contractual obligations, and since the contractor had only executed a portion of the work, the primary contract was not validly performed, thus relieving the surety of its guarantee for the unexecuted portion; the high court upheld this decision, affirming that the surety's obligation is strictly accessory to the principal contractor's commitment, and without the execution of the work as stipulated, the guarantee did not activate for the remaining obligations.
Regeste Legislator
Généré par l'IASurety Obligation Limited to Executed Portion of Contract: A property owner, having contracted for construction work that was subsequently abandoned by the contractor before completion, sued the contractor's surety, demanding that the surety fulfill the remaining obligations or pay damages, but the appellate court dismissed the claim, reasoning that the surety's undertaking only guaranteed the execution of the contractor's initial contractual obligations, and since the contractor had only executed a portion of the work, the primary contract was not validly performed, thus relieving the surety of its guarantee for the unexecuted portion; the high court upheld this decision, affirming that the surety's obligation is strictly accessory to the principal contractor's commitment, and without the execution of the work as stipulated, the guarantee did not activate for the remaining obligations.