American Fidelity Co. v. Cray

RSA 447:16 provides in part that officers who contract in behalf of the State for the construction of public highways shall “obtain as a condition precedent to the execution of the contract, sufficient security by bond or otherwise . . . conditioned upon the payment by the contractors and subcontractors for all labor performed or furnished . . . for all material used and for fuels, lubricants . . . and supplies purchased by said principal and used in carrying out said contract.”

On March 24, 1958, the plaintiff issued a contract bond as surety. The principal was LaClair Bros. Construction…