Failure

In legal parlance, the negleet of any duty may be deseribed as a “failure.” But in the language of the business world this term, applied to a merchant or mercantile concern, means an inability to pay his or their debts, from insolvency, and the word must be regarded as synonymous with “insolvency.” 1 Rice, 140, According to other authorities, “failure,” in this sense, means a failure to meet current obligations at maturity. Insolvency looks to the ability to pay; failure to the fact of payment, Failure is the outward act which stands for evidence of insolvency.

13 8. C, 926. See, also, 10 Blatchf. 256; 24 Conn. 310.