Smith & Wimsatt v. Chilton

Citations

• 84 Va. 840
• 6 S.E. 142
• 1888 Va. LEXIS 153

Syllabus

<p>1. Contracts—Release—Nudum pactum.—Creditor’s agreement to release debtors on payment of less than his just demand, is not binding if without consideration, (Seymour v. Goodrich, 80 Va., 303) particularly where debtors are not parties to agreement and do not promise to pay the less sum for the entire demand then due and payable. Sed vide Code 1887, $ 2858.</p> <p>2. Idem—Estoppel—Judgment—Assignee—Case at bar.—Creditor agrees to accept less than amount due from his debtors in satisfaction of his debt. He then assigns the entire debt. Of this assignment debtors have notice. They permit decree to be entered against them for the entire debt:</p> <p>Held :</p> <p>The debtors are estopped from falling back upon the compromise and release.</p> <p>3. Equitable Jurisdiction and Relief—Fraud—In pari delicto.—If the decree for the entire debt was permitted to be entered for a fraudulent purpose, equity would not aid such purpose by enforcing the compromise though it were valid. Barnett v. Barnett, 83 Va., 504.</p>