Randel v. President of Chesapeake & Delaware Canal

1 Del. 233
CourtSuperior Court of Delaware
DecidedJuly 5, 1833
StatusPublished
Cited by4 cases

This text of 1 Del. 233 (Randel v. President of Chesapeake & Delaware Canal) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Randel v. President of Chesapeake & Delaware Canal, 1 Del. 233 (Del. Ct. App. 1833).

Opinion

Chief Justice Clayton delivered the following opinion of the court.

Clayton, Ch. J.

To put the true construction on the contract between John Handel and the Chesapeake and Delaware Canal Company, it will be necessary to look through the whole instrument, to see its general nature and design, in order to discover what was the real *270 meaning and intention of the parties; and when we have gathered from it that intention, it must be the rule of our decision. No settled form of words is necessary to create a covenant. Any words in a sealed instrument by which a party manifests an intention to become bound to another to do or not to do an act, either by himself or a third person, if the act be possible, and not immoral or unlawful, will make a covenant, and the law will hold him to his undertaking, however inartificial the words may be which he has used, and covenant will lie.

(Inspection clause.) The plaintiff on his part covenants to construct and make a certain portion of the Chesapeake and Delaware Canal, and the defendants on their part covenant to pay him the stipulated prices. This is a work of great magnitude, requiring great labor, the employment of vast numbers of men, and great capital. It is an undertaking which no contractor in this country, with our limited fortunes, could hope to accomplish, relying on his own funds. Hence the necessity of the stipulation in the contract for speedy and frequent payments during the progress of the work, and hence the necessity of fixing upon some mode by which the amount of these stipulated payments should be ascertained. The very existence of the plff. as a contractor depended on the fulfilment of this part of the contract. Delay was ruin: it would necessarily in its consequences work a forfeiture of the contract. It may not be needless to remark that the plaintiff did not hold himself out to the defendants as a man capable of accomplishing the task which he had undertaken upon his own capital. The contract shows that they were aware of his inability in this respect, and they were aware of the necessity of furnishing him with money as the work proceeded. It is readily seen from this, how" important it was to the plaintiff that the defendants should agree with him to select a person who should examine and inspect the work during its progress, and estimate the number of cubic yards of excavation and embankment, and certify such estimate, upon which only could the plff. demand his semi-monthly payments for work done. It is true that the two clauses connected with this subject, and which seem naturally to belong to and form a part of each other are disjoined, having interposed between them the proviso in relation to the ten per cent, and the clause relating to the revision of prices. Connect these two clauses relating to the same matter of contract, and they read thus: “And the party of the second part (the defts.) agrees to pay the party of the first part, his executors, admrs. and assigns, for completely performing this contract, the sums which are stated as the cost thereof in the said estimate of the party of the first part, under the conditions and provisions expressed in the annexed schedule, payments to be made every fortnight according to the said schedule for the work which the engineer of the company shall certify to have been actually done by the party of the first part.” “And the said works, during their progress, shall be carefully examined and inspected; and to prevent misunderstanding and disputes it is hereby agreed that Benjamin Wright, Esquire, or some other competent engineer, to be selected by the party of the second part, shall be the inspector of the said works, and shall estimate the number of cubic yards of excavation, and also of embanlt;V *271 ment, and his estimate thereof, when certified to the party of the second part, shall be final and conclusive between the parties.”

It was said in the argument by the counsel for the defendants, that this latter clause was introduced into the contract for the peculiar benefit of the canal company; but we think that no sufficient reason was assigned for arriving at this result. The canal company, being a corporation, cannot act of itself, but must act through its agents. The plaintiff having undertaken to execute a work for them upon their own lands, any agent whom they might appoint for that purpose, had a right to go upon the lands to inspect the work, estimate the number of cubic yards of excavation and embankment, and certify such estimate to his employer. No agreement of the parties was necessary to legalize such acts or to give any such power. It existed independently of any contract. So far at least no contract was necessary; so far it was not beneficial to the company. It is true the assent of Randel was necessary to make the certificate obligatory and conclusive upon him. But if this had been an express covenant on the part of the defendants, drawn in as strong language as could have been used to make it their covenant only, by which they engaged to appoint an inspector who should examine and inspect the works, should estimate the number of cubic yards of excavation and embankment; should certify that estimate, and that the certificate should be conclusive on the parties, by sealing the instrument he would have given his assent as strongly as if he had in express terms agreed to it. We have shown how infinitely important it was to the plaintiff that his work should be inspected in its progress, and its amount estimated and certified. We have already seen by the first clause of the contract, just quoted, that the company, in express terms, covenant to pay every fortnight for work which the engineer of the company shall certify to have been actually done. We do not lay much stress on the words “which the engineer of the company shall certify;” but we do attach much importance to the positive and sole covenant of the company that they will pay every fortnight for work which their engineer shall certify to be done. If there was nothing else in this contract, an ordinary man in forming his opinion of this clause, and not choosing to exercise his subtlety and ingenuity, would not hesitate to say that as the company had engaged to pay every fortnight for work actually done, and as the delay of payment would not be honest, would be contrary to good faith, and might be ruinous in its consequences to the other party, they at the same time meant to engage that their own engineer should perform this service. For we deny that the engineer, or any other servant of the company, in the outset, and before he had taken upon himself this especial duty of inspecting, estimating and certifying, would be liable to the plff. for not performing this duty. At the same time we do not wish to be understood as denying the position, that where one gratuitously undertakes a trust, he is responsible for the faithful execution of it. Besides, it does not appear on this record that Wright, or any other person, ever assumed this trust; of course no one could be responsible. Here is a wrong without a remedy, unless the company is responsible. But Benjamin Wright, or some other competent engineer, to he selected by the company, is to *272 be the inspector. One may be a very competent engineer, and yet not be very competent to respond in damages to a party aggrieved.

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Cite This Page — Counsel Stack

Bluebook (online)
1 Del. 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/randel-v-president-of-chesapeake-delaware-canal-delsuperct-1833.