The trustee of a bankrupt trader assigned to a third party the goodwill of a bankrupt’s business, ‘and also all the book and other debts, securities, credits, effects, contracts, and engagements belonging or appertaining to the said business to which the vendor as such trustee is entitled.’ At the time of his bankruptcy the trader was in a position to bring an action of damages for breach of contract against a wholesale firm which had undertaken to divide a certain bonus and profits among its customers for a number of years, but had put it out of its power to fulfil its contract by going into voluntary liquidation and selling its business.
Held that the contract and right to sue upon it were conveyed by the assignation.
Judges:
Lord Chancellor (Loreburn), Lords Davey, James of Hereford, and Robertson
Citations:
[1906] UKHL 618, 44 SLR 618
Links:
Jurisdiction:
England and Wales
Insolvency, Contract
Updated: 26 May 2022; Ref: scu.625467