Beebe v. Wells

Citations

• 153 F. 133
• 82 C.C.A. 285
• 1907 U.S. App. LEXIS 4388

Syllabus

<p>Biixs ajstd Notes — Constderatiox—Fobbtsabanoe to Sue.</p> <p>The B. S. Company, being insolvent, instead of liquidating, formed a new corporation, which subsequently became bankrupt, conveying a substantial portion of the assets of the i*. S. Company to the new corporation, in payment of capital stock. Claimant, a creditor of the I'. S. Company, had been demanding payment, and, after the reorganization, proposed that the balance of the 1‘. S. Company’s assets be transferred to the new corporation, in consideration of certain notes of the latter which should be transferred by the new corporation to claimant as security for its debt, threatening otherwise to sue to wind up both corporations. The notes were executed as agreed, but no additional property was transferred from the P. H. Company to the bankrupt. Held, that claimant’s promise to forbear suit against both corporations constituted a sufficient consideration for tile bankrupt’s notes.</p>