Paul v. Paul

Citations

• 266 Pa. 241
• 109 A. 674
• 1920 Pa. LEXIS 542

Syllabus

<p>Partnership — Certificate of partnership filed in prothonotary’s office — Fraud—Intention to defraud creditors — Estoppel—Equity— Accounting — Dissolution—Fraud as defense — Contract.</p> <p>1. Where a father, a son and a daughter filed a certificate of partnership in the prothonotary’s office, although no partnership in fact existed, and the certificate was filed to protect the property of the father from creditors, and the son subsequently files a bill in equity against his father and sister for a dissolution of partnership and for an accounting, the defendants cannot set up as a defense the fact that the certificate was filed of record for illegal purpose.</p> <p>2. A voluntary conveyance made or contract entered into for the purpose of defrauding creditors, although void as to them is binding upon the parties, inasmuch as the contract being for an illegal purpose, the law will leave the parties where it finds them, and as between themselves they will not be permitted to set up their fraudulent act to avoid their obligations under its terms.</p>