The M Milk Co. was negotiating a sale of its business to the defendant, who did not want to purchase the business unless M Co. could deliver the personal property free of incumbrances. G, who held a mortgage on these properties, was present at the first negotiations between M Co. and the defendant, and at this time he released his mortgage in consideration of an assignment to him by M Co. of all the debts now due or to become due to it. Shortly thereafter a sale of the property was negotiated to the defendant, the result of which was that the defendant became indebted to M Co. for the purchase price. Part of this price being outstanding, M Co.'s receiver brought this action to recover the balance due. Held, M Co. had no right to recover because the debt due under the contract of sale had been effectively assigned to G. Bergson v. H. P. Hood & Sons, (Mass. 1938) 15 N. E. (2d) 196.

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