71 P. 133 | Or. | 1903
after stating the facts, delivered the opinion of the court.
Two questions are presented by the record: (1) Is the contract, to secure the faithful performance of which the bond
And, wherever it is manifest that the security intended to be reserved for the benefit of the surety has become impaired by what has been done by the obligee in the nonobservance of his
In coming to this conclusion, we have not overlooked the case of Cochran v. Baker, 34 Or. 555 (52 Pac. 520, 56 Pac. 641), wherein it was held that a premature payment on a building contract by the principal operated as a discharge pro tanto only of the surety. By an examination of that case it will be seen that the holding was not necessary to a decision thereof. The real question was whether a nonsuit should have been granted. As said in the opinion, it was elicited “that defendant knew in most part the manner in which payments were being made, and to a considerable extent directed how and when they should be made; so that, in any event,' it would have been manifestly improper to grant the nonsuit. ’ ’ It follows, therefore, that the ease itself was rightly and properly decided, but, in so far as the holding there announced is in conflict with the present one, it should be considered as overruled. It follows that the judgment of the court below should be affirmed, and it is so ordered.
Affirmed.