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Antecedent Transactions: Is A Preference Good Consideration For The Purposes Of S238?

Publication: Mondaq Business Briefing
Publication Date: 13-OCT-06
Format: Online
Delivery: Immediate Online Access
Full Article Title: Antecedent Transactions: Is A Preference Good Consideration For The Purposes Of S238?(Barber and Henry v CI Ltd)

Article Excerpt
In what appears to be the first case of its type, a court has considered whether a payment, which the court determined was a preference, could nonetheless constitute valuable consideration for the purpose of providing a defence to a transaction at an undervalue claim.

A director of (insolvent) company C had personally borrowed from a lender but at the director's request, the...



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