Kidder v. Wittler-Corbin Machinery Co.

Citations

• 38 Wash. 179
• 80 P. 301
• 1905 Wash. LEXIS 1142

Syllabus

<p>Sales—Conditional Sale Teemed a Lease—Validity. The delivery of machinery under a conditional bill of sale, termed a lease, for a specified price payable in installments, providing that payments shall be applied as rent with the right of forfeiture until full payment is made, is valid as a conditional sale, passing no title until final payment, and binding also on third parties.</p> <p>Same—Forfeiture for Nonpayment—Re-sale—Fraud—Insolt vent Corporations—Fraud on Creditors—Receivers—Recovery of Property—Tender. Where a corporation, after purchasing machinery under a conditional bill of sale, became insolvent and defaulted, whereupon the vendor declared a forfeiture and re-sold the property to a brother of the president of the corporation, who paid his own money on the purchase price, neither the purchaser’s knowledge of the insolvency, nor collusion with the officers of the corporation, would amount to a fraud upon creditors, making the purchaser a fraudulent trustee, so as to entitle a receiver to recover the property, where the receiver did not tender the purchase price paid, and the insolvent corporation was not prevented by any fraud from making its payments on its original purchase.</p>