Sale of Succession – Agreement – Obligation – Discharge – Novation.-
An agreement was gone into by the residuary legatees in a settlement with the widow of the deceased testator, whereby the latter agreed to purchase their right of succession for a fixed sum, they assigning their interest over to her. Stewart, a neutral party, on behalf of the widow, interposed, and allowed his name to be used in the transaction; and as the estate of the deceased was not then realized, became absolutely bound to pay the respective sums at which their interest was bought up. Thereafter the widow herself transacted with the beneficiaries, and granted bonds to some of them for the amount, without the interference of Stewart, and she granted time for payment. The widow afterwards fell into poverty, and could not pay. Held that Stewart was still bound, and that he was not released by the new transaction had with the widow herself, as that was a mere bond of corroboration, and did not discharge him.
[1780] UKHL 2 – Paton – 549, (1780) 2 Paton 549
Bailii
Scotland
Contract
Updated: 12 January 2022; Ref: scu.561502