Brief Fact Summary. The Plaintiff agreed to do construction work for the Defendant’s new foundry. The contract did not specify the time of payment. This dispute arose after the Plaintiff submitted a bill to the Defendant, which he refused to pay.
Synopsis of Rule of Law. If no agreement is made as to the time of payment, the work must be substantially performed before payment can be demanded.
Issue. Did the Defendant properly refuse to pay the Plaintiff’s bill before the Plaintiff substantially performed on the contract?
Held. Yes. If no agreement is made as to the time of payment, the work must be substantially performed before payment can be demanded. Here, the contract did not specify payment terms. The Plaintiff sent the first bill for his services after he had finished the first floor. Certainly, this cannot be considered substantial performance on the contract for the construction of a foundry. Therefore, the Plaintiff was entitled to no payment at that time.
Discussion. If the agreement is silent as to time of payment, the work must be substantially performed before one can demand payment.