John A. Cozzone Co. v. Redfield

Pathe Freres Phonograph Company owed Cozzone Company for merchandise, approximately, $20,000, evidenced by a trade acceptance of $5,000, discounted and held by a bank; a trade acceptance of $3,000, discounted by one Schencker; a trade acceptance of $3,000 in hand, and by an open book account balance of about $9,000. To induce Cozzone Company to sign a credit extension agreement, the Pathe company, then in financial difficulty and in charge of a creditor's committee, delivered to it, in part payment of the indebtedness, merchandise and machinery, equal in value to the book account, and enough…