Conditional Sales in Bankruptcy; a Treatise on the Law of Conditional Sales, Consignments, and of Sales Induced by Fraud, in Bankruptcy
Conditional Sales in Bankruptcy; a Treatise on the Law of Conditional Sales, Consignments, and of Sales Induced by Fraud, in Bankruptcy

Author: Max Isaac

Publisher: Rarebooksclub.com

Published: 2013-09

Total Pages: 32

ISBN-13: 9781230051635

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1905 edition. Excerpt: ... pays over the proceeds to his principal. (National Bank v. Goodyear, 90 Ga. 725. ) Therefore, the contract of the consignor must stand or fall as a consignment and the effect of the failure to register ordinarily does not enter into the question. (National Bank v. Goodyear, supra., l SALES INDUCED BY FRAUD. STATUS OF SUCH CONTRACTS IN BANKRUPTCY. 70. Statement of Principle.--W'here a party fraudulently concealing his insolvency and his intent not to pay for goods. induces the owner to sell them to him on credit, the vendor, if no innocent third party has acquired an interest in them, is entitled to disafiirm the contract and recover the goods. (Donaldson v. Farwell, 93 U. S. 631; Turner v. Ward, 154 U. S. 618.) These decisions were rendered prior to the enactment of the existing bankruptcy acts, but the principle therein enunciated is controlling. 71. Georgia statute on the subject.--In Georgia, the principle decided in Donaldson v. Farwell, supra has been codified as a State statute, and the vendor may disaflirm the contract and recover his goods if no innocent third party has acquired an interest in them. (Civil Code Ga. 1895 section 3531.) 7 2. May rescind though mortgage given.--Goods fraudulently purchased under circumstances which entitle the vendor to la rescission for fraud, do not become the 'property of the purchaser so as to entitle him to mortgage them to an existing creditor as security ifor an antecedent debt and thus create a mortgage lien superior to the title of the vendor, who, on discovery of the fraud, rescinds the sale and reclaims the goods, the mortgagee not paying anything nor parting with anything as a consideration for the mortgage, the consideration being the antecedent debt only....