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Set-off: Difference between revisions
→Equitable set-off
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====Equitable set-off==== | ====Equitable set-off==== | ||
This is available to a debtor whose cross-claim arises from the same transaction (or a closely related transaction) as the original debt. Under this device a debtor simply deducts its claim from the debt it owes and tenders any balance to the creditor. The sums in question must be due or, if representing unliquidated damages, a [[good faith]] and reasonable assessment of the loss. | This is a self-help remedy available to a debtor whose cross-claim arises from the same transaction (or a closely related transaction) as the original debt. Under this device a debtor simply deducts its claim from the debt it owes and tenders any balance to the creditor. The sums in question must be due or, if representing unliquidated damages, a [[good faith]] and reasonable assessment of the loss. (Contrast with set off at law, which requires the claims to be determined by judgment of the courts). | ||
In {{casenote|Geldof Metaalconstructie|Carves}} [2010] EWCA Civ 667 the leading judgment confirmed the equitable test as being whether the "cross-claim is ... so closely connected with the claimant’s demand that it would be manifestly unjust to allow it to enforce payment without taking into account the cross-claim". | |||
====[[Banker’s set-off]]==== | ====[[Banker’s set-off]]==== | ||