Voluntary Conveyance - Definition - Law Dictionary Home Dictionary Definition voluntary-conveyance

Definition :

Voluntary conveyance. A conveyance by way of gift or otherwise without valuable consideration. Liable to be defeated, under 27 Eliz. c. 4, by a subsequent sale for value, but no voluntary disposition whenever made shall be deemed to have been made with intent to defraud by reason only that a subsequent conveyance for valuable consideration was made if that conveyance was made after the 18th January, 1893: (English) Law of Property Act, 1925, s. 173, reproducing 27 Eliz. c. 4, as amended by the (English) Voluntary Conveyances Act, 1893. Any conveyance made with intent to defeat or delay creditors may be set aside under 13 Eliz. c. 5; see Twyne's Case, (1601) 3 Rep. 80; 1 Sm. L.C., unless the conveyance was made for valuable consideration and in good faith or upon good consideration and in good faith to any person not having at the time of the conveyance notice of the intent to defraud creditors [s. 172 (3), (English) Law of Property Act, 1925] This Act (ss. 172 and 173) repeals and reproduces the Acts above referred to with amendments. 'Good faith' appears to mean 'as between grantor and grantee,' since an intent to defraud creditors is the gist of the action and must be proved in limine. As to good consideration, see CONSIDERATION (end of title).

By the (English) Bankruptcy Act, 1914, s. 42:-

(1) Any settlement of property not being in consideration of marriage or upon a sale or mortgage for valuable consideration or property coming to the settlor after marriage in right of his wife in void if the settlor becomes bankrupt within two years in any case, and within ten years if the settlor was not at the time of the settlement able to pay his debts without the aid of the settled property and had not transferred the property to the trustee of the settlement at that time.

(2) Any agreement in consideration of marriage to make a future payment to or to settle future property on persons within that consideration if, as regards the future property, the settlor had no interest in it at the time, or if either the money or property was not money or property in right of the settlor's wife or husband, is to be void against the trustee in bankruptcy if the agreement has not been performed at the date of commencement of the bankruptcy.

(3) And even if any such agreed payment or transfer (under 2) was made before bankruptcy it may be avoided unless it was made more than two years before the bankruptcy or the settlor was able to pay all his debts at the time without the aid of such money or property, or unless themoney or property was an expectation from a person named in the agreement and was paid or transferred within three months after coming into possession or control of the settlor.

The beneficiaries under either (2) or (3) may claim for dividend after the creditors have been satisfied. See also s. 27, ibid.; FRAUDULENT CONVEYANCES.