A, having previously borrowed andpound;1000 of B, executes to him a bond for that sum, and B, two days afterwards, executes a deed, whereby he covenants that the bond shall not be enforced: some years afterwards, B having become bankrupt, his assignees bring an action on the bond, and file a bill to have the deed of covenant declared fraudulent. Held, that the Court will not interfere against the legal operation of the deed; there being nothing to shew that B was insolvent when he executed it; and there being evidence, that A. had also at that time pecuniary claims on E, and that the execution of the bond was accompanied by an agreement, that payment of it should not be enforced.
Citations:
[1826] EngR 1119, (1826) 1 Russ 553, (1826) 38 ER 213
Links:
Jurisdiction:
England and Wales
Contract, Insolvency
Updated: 15 May 2022; Ref: scu.325883
