Kuhlman Electric Co. v. American Surety Co.

Hammer & Reed, Inc., entered into a contract to build a schoolbouse in Buffalo, New York. Defendant was surety on the bond of Hammer & Reed, Inc., given to secure tbe performance of its contract. The bond, signed by defendant, among its conditions provided:

“That if the principal shall faithfully perform the contract on Ms part, and satisfy all claims and demands, incurred for the same, and shall fully indemnify and save harmless the board from all costs and damage which it may suggest by reason of failure so to do, and shall fully reimburse and repay the board all outlay and expense which the…