Connelly v. Peck

Citations

• 6 Cal. 348

Syllabus

<p>The transfer of a bond for title to land upon a promise by the assignee to pay a eertain debt of the assignor, binds the assignee to perform the trust, and the obligation to pay the debt is not affected by any misrepresentations made by the assignor to the assignee, because the rights of the creditor under the transfer had already vested. jNor is the obligation of the assignee affected by the fact that the land was partnership property of the assignor and assignee, where it was not so held out to the world, and where the partnership was unknown to the creditor.</p> <p>And where the assignee was a commercial firm, and the assignment was made to an agent acting as the trustee of the firm, and the agent obtained from the obligor in the bond a deed for the land to the members of the firm, and subsequently the firm sold the land to their successors in business, constituting a new firm, of which some of the old firm were members, Held that the purchasers are chargeable with notice of the trust.</p>