Young v. Pacific Surety Co.

This appeal is prosecuted from a judgment of nonsuit, and involves the liability of a surety com pany upon a bond of indemnity issued in favor of plaintiff, an employer, and indemnifying him against the dishonesty of his cashier and bookkeeper.

In plaintiff’s application for the bond of indemnity he was asked the following question: “At what intervals will his books and accounts be examined and audited, and all moneys, securities, vouchers, and property on hand be examined and verified?” In reply he said, “Daily.” He was then asked the additional question: “By whom will this be done?” and his…