Upton v. Craig

Citations

• 57 Ill. 257

Syllabus

<p>1. Fraudulent conveyances—as against whom they may be binding. It has been held that, however fraudulent a deed maybe as against creditors of the grantor, it still may be binding as between the parties to the instrument. This principle is in no way changed by the chattel mortgage act of this State.</p> <p>2. A purchased of B, as agent of O, a threshing machine belonging to the latter, and gave his three several promissory notes, secured by a mortgage thereon, and also on two horses, for the price, being 0685, but in making the mortgage, for some purpose not explained, induced the agent to specify in the mortgage, another note payable to his principal for 0200, which note, after holding a few months, the agent, his principal never at any time having had any knowledge of the matter, re-delivered to the. purchaser. Upon objection that this fact avoided the mortgage, it was 7wM, that while it might possibly have had that effect if a then subsisting creditor had been prejudiced by it, or it had operated so as to delay or hinder him in the collection of his debt, and as to such might be regarded as evidence of fraud, or tire mortgage fraudulent per se and void, yet there being no subsisting creditors of the mortgagor at the time of the execution of the mortgage, other than the mortgagee, the mortgage was valid and binding, not only as between the parties, but also as to third persons or subsequent creditors.</p> <p>3. Chattel mortgage—-possession—agency. The mortgage gave to the mortgagee the right to take possession of the property on default of payment of any of the notes at maturity. A short time before the last note became due the mortgagor absconded, leaving the horses on a farm he had rented of D, whereupon the latter took the horses to his barn and went to B, the agent of the mortgagee, and told him he had the horses there for him and intended they should go to the mortgagee: Held, this was sufficient to constitute D the agent of B to keep the horses for him; at