Johnson & Smith v. Farnum

Bleckley, Judge.

A debtor made an assignment for the benefit of his creditors, but inserted a condition that they must relinquish their claims, or treat them as fully paid, in order to take the benefit of it. Shortly thereafter certain creditors complained by bill of this assignment, and prayed for injunction and receiver. They alleged that certain of their debts were not due; that the goods purchased from them were bought while the debtor was insolvent and when he knew that he would be unable to pay for them; that some of these goods were still on hand, having but lately been delivered to the…