Set-off—key cases

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Set-off—key cases
  • Principles of set-off
  • Contractual set-off
  • Insolvency set-off
  • Banker’s set-off
  • Transaction (or equitable) set-off
  • Independent set-off

Set-off—key cases

This Practice Note sets out certain key cases and associated relevant content in relation to set-off. The cases are divided by topic area and include:

  1. Principles of set-off

  2. Contractual set-off

  3. Insolvency set-off

  4. Banker’s set-off

  5. Transaction (or equitable) set-off

  6. Independent set-off

Principles of set-off

Names of partiesJudgment dateCase summaryRelevant content
Jones v Mossop (1844) 67 ER 50624 July 1844With the exception of contractual set-off, one of the key features of set-off is that there must be mutuality of debts. This case sets out the guiding principle behind mutuality—ie that a debtor should not be entitled to use another person's debt to pay its own liability.
See Practice Note: What is set-off and when is it available?—The requirement for mutuality of debts
Edlington Properties Ltd v JH Fenner & Co Ltd [2006] EWCA Civ 403, [2006] 3 All ER 1200, [2006] 1 WLR 158321/22 March 2006This case is authority for the rule that an assignee of the benefit of a debt takes the benefit of that debt ‘subject to equities’ which include rights of set-off.See Practice Note: What is set-off and when is it available?—The requirement for mutuality of debts

Contractual set-off

Names of partiesJudgment dateCase summaryRelevant content
Modern Engineering (Bristol) Ltd v Gilbert-Ash (Northern) Ltd [1973] 3 All ER 19517

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