Garahy v. G. M. Bayley & Co.

Citations

• 25 Tex. 294

Syllabus

<p>Where the suit was to test the question of a fraudulent conveyance, as defined in the first clause of the 2d section of the act of 18th January, 1840, to prevent frauds and fraudulent conveyances, (Paschal's Dig., Art. 3876, Note 906,) the question of good faith in making the purchase is the essential issue.</p> <p>He is not a purchaser in good faith who knows and assents to the design to defraud creditors, or who might have known by the exercise of ordinary diligence.</p> <p>To use the word “necessary” diligence in the instruction is not error.</p> <p>In a trial as to a fraudulent conveyance, if the vendee use the vendor as a witness to prove good faith, the plaintiff may prove subsequent admissions by such a witness to contradict his evidence.</p>