Dunlap v. Sunset Lumber Co.

Action to Cancel Note and Deed op Trust—Deed of Trust on Wife’s Property—Sufficiency of Consideration.—Where a wife joined her husband in the execution of a promissory note and executed a deed of trust upon her separate property to secure its payment, under a transaction between her husband and certain persons interested in the corporation to which the note was given, by which transaction the husband assumed, in consideration of the transfer to him of one-third of the capital stock of another corporation in which such persons held the majority of the capital stock, the payment of an existing indebtedness of the latter corporation to the former corporation, the note and deed of trust were supported by a sufficient consideration, although the wife did not receive any of the stock; and the wife did not by the transaction merely become a surety of the debtor corporation for the extinguishment of its antecedent obligation to the other corporation.