Revised Laws of Saint Lucia (2021)

Section VI   Avoidance of Contracts and Payments made in fraud of Creditors

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    965.   Creditors may impeach the fraudulent acts of their debtors, according to the rules provided in this section.

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    966.   A contract cannot be avoided unless it is made by the debtor with intent to defraud, and will have the effect of injuring the creditor.

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    967.   A gratuitous contract is deemed to be made with intent to defraud, if the debtor be insolvent at the time of making it.

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    968.   An onerous contract made by an insolvent debtor with a person who knows him or her to be insolvent is deemed to be made with intent to defraud.

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    969.   Every payment made by an insolvent debtor to a creditor knowing his or her insolvency, is deemed to be made with intent to defraud, and the creditor may be compelled to restore what he or she has received or the value thereof, for the benefit of the creditors according to their respective rights.

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    970.   An onerous contract made with intent to defraud on the part of the debtor, but in good faith on the part of the person with whom he or she contracts is not voidable; saving the special provisions applicable in cases of bankruptcy.

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    971.   No contract or payment can be avoided under this section at the suit of a subsequent creditor, unless he or she is subrogated in the rights of an anterior creditor, except in the cases mentioned in the Commercial Code. (Amended by Act 34 of 1956)

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    972.   Further provisions concerning the presumption of fraud and nullity of acts in fraud of creditors are contained in the Commercial Code. (Amended by Act 34 of 1956)