Commentary

41 Discharge by prejudicial conduct

BUILDING AND ENGINEERING vol 5

41 Discharge by prejudicial conduct

41 Discharge by prejudicial conduct

The liability of a surety will be discharged by any misconduct on the part of the employer which materially prejudices the surety’s position, such as concealing or conniving at the contractor’s default1. The surety cannot be held responsible for loss resulting from the employer’s breach of an obligation to supervise the works, although the position is different where the employer merely chooses not to exercise an option to supervise2. Moreover, the surety will be released upon failure by the employer to comply with any express terms of the contract of suretyship,

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