A prospective partner in the firm paid andpound;2,000 to a broker on terms that he should have the option of demanding its repayment if he did not become a partner by a date. The firm was hammered before that date and having given notice to determine the agreement, he then petitioned for bankruptcy in that sum.
Held: The alleged debt of andpound;2,000 was not a liquidated sum and could not therefore found a petition because the hammering of the firm was not an event which entitled notice of determination to be served under the agreement. The only remedy for the firm’s inability to perform the contract was one in damages which was not a debt in a liquidated sum.
Citations:
(1901) 1 QB 51
Cited by:
Cited – McGuinness v Norwich and Peterborough Building Society CA 9-Nov-2011
The appellant had guaranteed his brother’s loan from the respondent, and the guarantee having been called in and unpaid, he had been made bankrupt. He now appealed saying that the guarantee debt, even though of a fixed amount could not form the . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 11 May 2022; Ref: scu.450461