Smith v. Dennison

Citations

• 101 Ill. 531
• 1882 Ill. LEXIS 118

Syllabus

<p>1. Evidence—credibility, when contradictory statements are shown. Although contradictory statements by a witness as to immaterial matters may tend to cast suspicion upon his testimony, they will not authorize its entire rejection, when he is corroborated by another witness, and not contradicted * by any other evidence in the case.</p> <p>2. Assignment for the benefit of creditors--what constitutes— rights under a transfer as between partners. Where one partner transfers and delivers to another all the assets of the firm, to collect the debts due the firm and pay and discharge its liabilities, giving such managing partner all the powers possessed by both, for the purpose of settling the partnership affair's and a division of the proceeds after payment of the debts, this is not an assignment for the benefit of creditors of the firm, but one for the benefit of the parties, and will not prevent the partner taking the assignment from securing one creditor to the prejudice of others.</p> <p>3. CoizdatebaiiS—may be given to secure more than one debt. Where a firm has given collaterals as security for a loan, and procures a further loan upon additional collaterals, the firm may, in. obtaining such new loan, contract with the person advancing the money that he may hold the securities as collateral to both debts, or his entire claim.</p> <p>4. Pabtneb—his power to pledge collaterals for money. Where one partner entrusted with the winding up of the business of the firm was authorized, by agreement, to trade any part of the assets, and to do all and everything for settling its affairs that might be deemed expedient, it was held, that such partner was authorized, on borrowing money to pay a liability of the firm, to pledge notes of the firm as collaterals to secure not only the new indebtedness so created, but also a prior indebtedness of the firm to the same creditor.</p>