Interstate Equipment Co. v. Smith

MOORE, Justice.

Great American, as surety, contends that it cannot be held liable for the amounts alleged to be due Interstate from the principal Bollinger for rental payments, repairs, tire adjustments and interest, for the reason that the amounts claimed to be due are not “labor and materials” under the condition of its bond with Bollinger.

It has long been established that a third party, for whose benefit a contract has been made, may maintain an action for breach of that contract. See, e.g., Products Corp. v. Sanders, 264 N.C. 234, 141 S.E. 2d 329 (1965); Gorrell v. Water Supply Co., 124…