This article will takes a look at the types of set off which could arise when a debtor has a cross claim against the creditor. This is used to reduce or eradicate the creditor’s claim.
This article will take a look at some forms of set-off these are,
Banker’s set off is generally used where a customer has one or more accounts with his particular bank and at least one is of these accounts are in debt and the other is in credit.
Another form of set off is where a debtor’s cross claim arises from the same transaction as the debt owed this form of set off is called equitable set off.
There is another form of set off which is called legal set off this however can only be invoked where the two claims are liquidated and these payments are due before the proceedings begins.