Grand Union Tea Co. v. Potter
New York Supreme Court
Action to recover for a default under an employment contract. The defendant John N. Potter entered into an employment contract with the plaintiff, the Grand Union Tea Company, and the defendant Charles H. Mason became the surety on a bond guaranteeing the faithful performance of the contract.
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Action to recover for a default under an employment contract. The defendant John N. Potter entered into an employment contract with the plaintiff, the Grand Union Tea Company, and the defendant Charles H. Mason became the surety on a bond guaranteeing the faithful performance of the contract. The contract contained the following clause: “ It is understood and agreed that second party shall solicit orders for merchandise at prices and premium rates fixed by first party and in such manner as first party may designate, and enter upon cards or books furnished by first party, the names and…
1Opinion of the CourtRodenbeck, J.
The defendant Mason is not liable. The contract, the performance of which he guaranteed, was not observed by the parties to it. Such a contract must be strictly performed to hold the surety. The parties may modify it and bind themselves but they thereby release the surety. In this instance the defendant Potter was permitted to withhold funds-or *54extend credit to his customers and credit was extended to him by the plaintiff, all of which were contrary to the terms of the contract. He was to sell for cash and was to account within ten days of the deliveiy of merchandise to him and at the end of…
2Cases cited4 opinions
- Walsh v. BailieNew York Supreme Court · 1813
- Westcott v. Fidelity & Deposit Co.Appellate Division of the Supreme Court of the State of New York · 1903
- DeCamp v. BullardNew York Supreme Court · 1898
- Schuyler v. EnglertNew York Marine Court · 1881