M and Co being involved in the affairs of a bankrupt firm, purchased for pounds 45,000 certain subjects from the trustee of the firm. To enable them to do so, they borrowed this sum from the Union Bank, and, by an agreement with the Bank, pounds 7500 of the price was to be paid into the trustee’s account for behoof of the personal creditors, and the balance of pounds 37,500, less pounds 2500, into a separate account for behoof of the heritable creditors. Thereafter, D. and Co. agreed to purchase the property from M. and Co. for pounds 47,000, the Bank agreeing to advance this sum to D. and Co., and to credit the sum to M. and Co. in part payment of a large debt due by them to the Bank. Held (affirming the judgment of the First Division), that the second agreement had not superseded the first, and that M. and Co. were still indebted to the Bank in the sum of pounds 45,000.
[1873] UKHL 319, 10 SLR 319
Bailii
England and Wales
Updated: 11 August 2021; Ref: scu.652906