Wilson v. Samuels

Citations

• 100 Cal. 514
• 35 P. 148

Syllabus

<p>Composition Agreement—Definition.—A composition agreement is one made upon a sufficient consideration between an insolvent or embarrassed debtor and his creditors, or a considerable portion of them, whereby the latter, for the sake of immediate or early payment, agree to accept a dividend less than the whole amount of their claims, to be distributed pro rata in discharge and satisfaction of the whole.</p> <p>Id.—Agreement Between Building Contractor and Lien Claimants.— A written agreement between a building contractor and claimants of liens upon the building by which it was mutually agreed that if the owner of the building would pay the amount due upon the building, the laborers should be first paid in full, and the remainder should be distributed pro rata among the other lien claimants, whereupon they would assign their liens to the owner of the building, is not technically a composition agreement, but is nevertheless valid and, operative and founded upon a sufficient consideration.</p> <p>Id.—Consideration—Foregoing Right to Foreclose Liens—Payment by Owner of Building.—The mutual agreement of the lienholders who signed such agreement to forego their right to foreclose their liens in consideration of being paid at a given time, and also the acceptance of the agreement by the owner of the building and payment by him under it, constitute a sufficient consideration for the agreement.</p> <p>ID,—Ratable Division of Money Due Contractor—Blank Amount— Certainty.—The fact that in the agreement between the contractor and the lien claimants the amount to be paid the lien claimants as their pro rata was left blank does not render the agreement fatally incomplete. The contract having provided that the money due from the owner of the building was to be divided ratably among the creditors of the contractor affords a criterion by which to ascertain the amount due and its disposition with sufficient certainty.</p> <p>Id.—Accord and Satisfaction—Tender—Estoppel.—Such agreemen