Morgan v. Board of Education

[246]

COOPER, C.

This appeal is from the judgment, and the only question is as to whether or not the findings support it. The court found that all the allegations of the complaint are true. It appears therefrom that in December, 1896, the plaintiff and defendant entered into a written contract, under the terms of which the plaintiff agreed to furnish certain designated warming and ventilating apparatus, and a system of water-closets for a certain high-school building, to be built for defendant, and that it agreed to pay plaintiff the sum of $9,496 therefor; that afterwards, without fault ón plaintiff’s part, the defendant refused to allow plaintiff to carry into effect and perform the said contract on his part, although he has at all times been ready and willing to perform the same as he agreed to do; that by reason of the premises the plaintiff has been damaged in the sum of $1,988. Judgment was duly entered for said sum. A public corporation or a quasi-municipal corporation has the power to enter into contracts for the purposes and under the authority conferred upon it by the statute. It is not claimed that defendant did not have the power to enter into the contract with the plaintiff. Having the power to enter into the contract, it became a valid and binding contract when entered into, in the form and in the manner prescribed by the statute. It was binding upon the plaintiff, and he was in law compelled to perform it, although its performance should result in loss to him. If he had failed to perform it of his own volition he would have been liable to defendant for all damages caused by his breach thereof. It was also binding upon defendant, and it is liable for damages caused by the breach thereof. It refused to allow plaintiff to perform. Having the power under the statute to make the contract, it became liable for its breach. It would be strange, indeed, if an artificial person could make a valid contract, binding upon the contractor and upon which the contractor would' be liable in damages for a breach, and yet escape liability on its part, by claiming that the public funds could not be used to pay damages. The defendant will not be allowed to escape responsibility upon any such pretext. It is well settled that in such case the corporation is liable in damages for the' breach of the contract. (2 Beach on Public Corporations, see. 1657;

Chambers