Set-off—key cases
Set-off—key cases

The following Banking & Finance guidance 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

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 parties Judgment date Case summary Relevant content
Jones v Mossop (1844) 67 ER 506 24 July 1844 With 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 1583 21/22 March 2006 This case is authority for the rule that an assignee of the benefit of a debt