Scott County Milling Co. v. Powers

Citations

• 112 Miss. 798
• 73 So. 792

Syllabus

<p>1. BANKRUPTCY. Preferences. Recovery.</p> <p>Payments made by an insolvent debtor are not recoverable as preferences, unless, at the time they were made the creditor to whom such payments were made had actual knowledge or constructive notice of the insolvency of the debtor.</p> <p>2. Preferences. Recovery. Knowledge of agents.</p> <p>The rule that notice to an agent is notice to the principal, being based upon the presumption that the agent will transmit his knowledge to his principal, the rule fails ’when the circumstances are such as to raise a clear presumption that the agent will not perform this duty, and accordingly where the agent is engaged .in a transaction, in which he is interested adversely to his principal, or is engaged in'a scheme to defraud the latter, the principal will not be charged with knowledge of the agent acquired therein.</p>