Barton-Mansfield Company v. Wells

Ponder Hillhouse, a building’ contractor, entered into an oral contract with F. S. Wells to build for the latter a bungalow for the agreed sum of $4,300. The contract contemplated a “turn-key” job. Hillhouse was to furnish all labor and material, but it was known that his means were insufficient to comply with his contract unless advances were made to him as the work progressed. Hillhouse commenced work, and Wells made advances amounting to $2,850, when he found himself unable to make further advances or to obtain the necessary credit to make the advances. There then existed two mortgages on…