Goodman's Trustee v Goldberg [1914] ZAWLD 32 (10 November 1914)

Insolrency.-Proof of debt.--Cause of debt.-Description.-Bond in favour of third person.-Preference.

An affidavit and proof of debt in respect of a bond need merely follow the terms of the bond, even though the latter wrongly describes the original cause of
the debt (Pienaar and J,'rankel v. Fourie's Trustees, 1913, C.P.D. 227, followed). A bond passed by a debtor in favour of a third person, who is either a nominee or a creditor of the first creditor, is not voidable as an undue preference on the
debtor·s insolvency. A owed B £250, and B owed C £125. A passed a bond in favour of C for £250
in order to secure his indebtedness. to B. C ceded the bond to B. On A's insolvency, B was held entitled to a preference for £250.