127 P. 797 | Or. | 1912
delivered the opinion of the court.
“A rule never to be lost sight of in determining the liability of a surety or guarantor is that he is a*588 favorite of the law, and has a right to stand upon the strict terms of his obligation, when such terms are ascertained. This is a rule universally recognized by the courts, and is applicable to every variety of circumstances. Its existence has'no doubt given rise to many of the expressions used by courts, when they have said that in construing the contract every intendment should be made in favor of the surety or guarantor, when, in fact, it should have no controlling influence at all on the construction of the contract. As illustrating the view of this rule, held by the courts, it has been said: ‘Where any act has been done by the obligee that may injure the surety, the court is very glad to lay hold of it in favor of the surety.’ Again: ‘No principle is more firmly settled in this State than this: That sureties may stand on the very terms of a statutory bond or undertaking. So clearly has this doctrine been announced and acted upon, that it may be regarded as entering into the condition of such an undertaking that it will not be extended by the courts beyond the necessary import of the words used. It will not be implied that the surety has undertaken to do more or- other than that which, is expressed in such obligation.’ Again: ‘It is now too well settled to admit of doubt that a guarantor, like a surety, is bound only by the strict letter or precise terms of the contract of his principal, whose performance of it he has guaranteed, that he is in this respect a favorite of the law, and that a claim against him is strictissimi juris.’ Again: ‘Nothing can be clearer, both upon principle and authority, than the doctrine, that the liability of a surety is not to be extended by implication beyond the terms of his contract. To the extent and in the manner and under the circumstances pointed out in his obligation he is bound, and no further. It is not sufficient that he may sustain no injury by a change in the contract, or that it may be even for his' benefit. He has a right to stand upon the very terms of his contract; and if he does not assent to any variation of it and a variation is made, it is fatal.’ ” 1 Brandt, Suretyship and Guaranty (3 ed.), Section 106.
The judgment of the circuit court is affirmed.
Affirmed.