Potter v. Belden
Massachusetts Supreme Judicial Court
Contract on a promissory note made by the defendant under date of November 26, 1866, for $300, payable four months after date to the order of Alvin N. Claghorn, indorsed by Claghorn to Caleb L. Thayer and by Thayer to the plaintiffs.
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Contract on a promissory note made by the defendant under date of November 26, 1866, for $300, payable four months after date to the order of Alvin N. Claghorn, indorsed by Claghorn to Caleb L. Thayer and by Thayer to the plaintiffs. The answer admitted the making of the note ; alleged that, if ever indorsed to the plaintiffs, it was so after it became due and had been dishonored, and they took it subject to all defences which could have been made to it in Thayer’s hands; that it was made without a lawful consideration; that the consideration for it had failed, which the plaintiffs knew when…
1Opinion of the CourtWells, J.
The purpose to secure a preference to a preexisting creditor, or in any respect to contravene the provisions of law relating to insolvency, does not render a sale of personal property illegal, as between the parties thereto. Neither of them is entitled to avoid the transfer; or to avoid any executory contract which arises from it, or depends upon it for its consideration. The statutes relating to insolvency give to the assignee, and to him alone, the right to disaffirm the transaction, and avoid all contracts, made to the prejudice of the estate represented by him, which are based upon it.…
2Cases cited2 opinions
- Harvey v. VarneyMassachusetts Supreme Judicial Court · 1867
- Crafts v. BeldenMassachusetts Supreme Judicial Court · 1868
3Cited by1 opinion
- National Mechanics' & Traders' Bank v. Eagle Sugar RefineryMassachusetts Supreme Judicial Court · 1871