This section is from the book "Popular Law Library Vol7 Equity Jurisprudence, Trusts, Equity Pleading", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
Contracts under this class are not fraudulent as between the immediate parties to the contract, or at least equity will not grant one relief as against the other.
5 Vol. III, Sub. 6, Sees. 42-57.
6 Pomeroy on Equity Jurisprudence, Sec. 943. 7 Vol. III, Sub. 6, Sees. 6-11.
The most numerous species of this class of fraudulent contracts are conveyances of property for the purpose of defrauding creditors. Such conveyances were declared to be void as against the parties defrauded by the statute of 13 Eliz., C. 5. Similar legislation is to be found in each of the states of this country. Such conveyances may be set aside not only when the transferor was in debt at the time the transfer was made, but also when the transfer was made in anticipation of debts about to be contracted, or a risk or liability about to be incurred.
Another illustration of frauds of this class is found in secret bargains in fraud of compositions with creditors. The basis of compositions with creditors is that each creditor should share alike, and a secret bargain favoring one is a fraud upon the other creditors and voidable.8
8 Solinger vs. Earle, 82 N. Y., 393; Miller vs. Saueubier, N. J. Eq., 71.