Mutual dealings-bankruptcy and liquidation, Financial Accounting


A right of set-off is allowed where there have been -

(a) Mutual credits, debts or other dealings resulting in pecuniary liabilities,
(b) Between the debtor and a creditor in the same right,
(c) Prior to the date of the receiving order,
(d) Without notice of an available act of bankruptcy.

An account is taken as at the date of the order, and the balance paid or claimed by the creditor.

Persons with mutual dealings cannot contract out of the right of set-off given by s.36 ibid though it may be possible for them to agree that their dealings shall not be regarded as mutual. National Westminster Bank Ltd. v Halesowen Presswork and Assemblies Ltd. (1972).

Posted Date: 12/13/2012 1:06:30 AM | Location : United States

Related Discussions:- Mutual dealings-bankruptcy and liquidation, Assignment Help, Ask Question on Mutual dealings-bankruptcy and liquidation, Get Answer, Expert's Help, Mutual dealings-bankruptcy and liquidation Discussions

Write discussion on Mutual dealings-bankruptcy and liquidation
Your posts are moderated
Related Questions
Cumulative and substitutional legacies and devises Where a will makes two gifts of unequal amounts to the same person, they are assumed, in the absence of a contrary indication

Dissolution If the winding up continues for more than a year, the liquidator must file progress reports with the registrar at such intervals as the court may prescribe s.333. W

APPOINTMENT OF TRUSTEES Capacity : Any person with legal capacity to hold property may be a trustee, except an infant. But the court will not appoint, and may remove:Persons u

Differences between estates and trusts Note particularly the following differences between estates and trusts:— 1. Estate: on the death of a testator or an intestate, all

Question 1  Describe and differentiate the four (4) different Financial Statements. HINT : use examples of actual companies or transactions to illustrate your answer. Give

im doing compound interest my calculator doest have anxy butyx cant do nothing with the ten being the power of .9

what managers should know about internal rate of return (IRR) and why?

Money demand in an economy in which no interest is paid on money is M d /P = 500 + 0.2Y - 1000i (a) Suppose that P = 100, Y = 1000, and i = 0.10. Find real money demand, nomi