McCullough's Lead Company v. Strong

Headnote

The plaintiff and various other manufacturing companies, firms and individuals, dealers in lead pipe, sheet lead, shot, etc., entered into an agreement not to change or vary prices without notifying each other, and for other purposes.

Each of the contracting parties was to deposit and did deposit $1,000, or securities to that amount, with defendant, who was selected as custodian, which were to be forfeited in case of the violation of the contract by the party depositing.

Defendant deposited a $1,000 U. S. bond. The agreement contained this clause: This agreement to be binding for five years, or until ten days’- notice in writing shall be given by any party of his or their desire to withdraw from the same. But the money or security which such party may have deposited with Joseph M. Strong, custodian, shall remain in his possession, or continue, until the expiration of the agreement, in order to give full opportunity to the inquiry as to the faithful observance of the provisions of this agreement or otherwise by the party thus withdrawing, prior to the expiration of the notice which he or they may give according to the provisions of this agreement.” One of the parties having served notice of his intention to withdraw, plaintiff, after the expiration of the ten days, demanded his bond, claiming the association was dissolved; defendant refused to surrender it. The material question in the case, was, as to whether the contract was terminated as to all the parties by-the notice at the end of ten days thereafter, so that they would be entitled to their deposits at the end thereof, or whether the contract continued as to the others and in consequence the custodian was entitled to retain the deposits until the end of the five years, or until the contract was terminated by consent of all. Held, that the service of the notice terminated the contract as to all at the end of ten days thereafter and entitled plaintiff to his bond.