Hastings v. Continental Food Sales, Inc.

This is an appeal from a judgment in favor of the defendant (respondent) in an action by the plaintiff (appellant), receiver for Lynden Frozen Foods, Inc., to recover certain funds as a voidable preference.

Lynden Frozen Foods, Inc., was an insolvent corporation. On January 19, 1959, the affairs of the corporation were entrusted to five trustees to manage the business for the benefit of the existing creditors.

On September 15,1959, the trustees entered into a written contract with the defendant Continental Food Sales, Inc. The pertinent provisions of that contract are as follows:

“It Is Agreed…