Fraudulent Conveyances Act 1571 (13 Eliz 1, c 5) was an Act of Parliament in England, which laid the foundations for fraudulent transactions to be unwound when a person had gone insolvent or bankrupt. The Act itself was repealed by the Law of Property Act 1925

Law of Property Act 1925

The Law of Property Act 1925 is a statute of the United Kingdom Parliament. It forms part of an interrelated programme of legisation introduced by Lord Chancellor Lord Birkenhead between 1922 and 1925. The programme was intended to modernise the English law of real property...

 s 127, but the successor to the rules laid down are now found in the Insolvency Act 1986

Insolvency Act 1986

The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.-History:...

 s 423.

Text

It is clear from the text of the statute that it was framed in a purposive manner. So if someone had the intention of defrauding a creditor, unless a transaction was made bona fide and for good consideration, it would be void.

Cases under the Act

• Alderson v Temple (1768) 96 ER 384, Lord Mansfield held the Act applied, not just to fraudulent conveyances, but also the granting of fraudulent preferences. He said a ‘fraudulent preference by a debtor, if made on the eve of, and followed by, the bankruptcy of the debtor, has been void against his creditors; because it aims at preventing that equal distribution of assets among the creditors, which has always been the object of those laws.’

See also

• UK insolvency law
  UK insolvency law
  United Kingdom insolvency law deals with the insolvency of firms and individuals in the United Kingdom. The important statutes are the Insolvency Act 1986, as amended by the Enterprise Act 2002, as well as the Company Director Disqualification Act 1986 and the Companies Act 2006.Insolvency is a...
  
  
• Statute of Bankrupts Act 1542
  Statute of Bankrupts Act 1542
  The Statute of Bankrupts was an Act passed by the Parliament of England in 1542. It was the first statute under English law dealing with bankruptcy or insolvency...
  
  
• Arbuthnot Leasing International Ltd v Havelet Leasing Ltd (No 2)
  Arbuthnot Leasing International Ltd v Havelet Leasing Ltd (No 2)
  Arbuthnot Leasing International Ltd v Havelet Leasing Ltd [1990] BCC 636 is a leading UK insolvency law case, concerning a fraudulent transaction under the Insolvency Act 1986 section 423.-Facts:...
  
  [1990] BCC 36

External links

• Validity of bona fide conveyances by solvent debtors as against prior creditors (1885) American law Register 489