California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 2 — Special Relations of Debtor and Creditor, Title 1 — General Principles, Section 3431
In the absence of fraud, every contract of a debtor is valid against all his creditors, existing or subsequent, who have not acquired a lien on the property affected by such contract.
Notes
Establishes that, absent fraud, every contract made by a debtor is valid against existing and later creditors who have not acquired a lien on the property affected by the contract. The rule protects the debtor’s contract from those unsecured creditors while leaving the stated fraud qualification and lienholder status outside the general validity rule.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 3431 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-2/title-1/section-3431