principle of set off

The principle of set on and set off of allocable surplus is as follows:Where for any year the allocable surplus exceeds the amount of maximum bonus payable to the employees, then, the excess shall, subject to a limit of twenty per cent of the total salary or wages of the employees, be carried forward for being set on in the succeeding year and ...

set-off noted above: set-off as an accounting and set-off as a defence.19 The former focuses on the practical effect of set-off which results in a discharge of reciprocal obligations. The latter focuses on the notion that set-off is pleaded as a defence to a claim, or as a counter-claim, and cannot be used "as a sword".

Principle Of Set Off. Principal Agent Problem . The principal agent problem occurs when a principal creates an environment in which an agent's incentives don't align with those of the principle. Get Price. Rawls, John Internet Encyclopedia of Philosophy.

Sec.15. SET ON AND SET OFF OF ALLOCABLE SURPLUS: (1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under sec.11,then the excess shall, subject to a limit of 20 percent of the total salary or a wage of the employees employed in the establishment in that ...

What is set off? Where the right of set off arises, it can act as a defence to part or the whole of a claim. Example: when the right of set off arises, if B …

In law, set-off or netting are legal techniques applied between persons or businesses with mutual rights and liabilities, replacing gross positions with net positions. It permits the rights to be used to discharge the liabilities where cross claims exist between a plaintiff and a respondent, the result being that the gross claims of mutual debt produce a single net claim.

Set-off clauses are written into legal agreements to protect the lender. A set-off clause allows the lender to seize assets belonging to the borrower, such as bank accounts, in the event of a default.

Example: when the right of set off arises, if B owes A £800,000, but A in fact owes B £200,000, B can set off that £200,000 when A claims its £800,000, and pay to …

Equitable right to set off is a debtor's right to reduce the amount of a debt by any sum a creditor owes the debtor. A debtor through his/her equitable right to set off can counter demand against a creditor. Equitable right to set off arises out of a transaction that is independent of the creditor's claim. The basic principle giving rise to ...

(a) if two parties have claims against each other (reciprocal claims) that are of an identical nature, each party may set-off its claim against the other party's cross-claim, provided the party making use of its right to set-off is entitled to demand the other party's performance under its claim and is entitled to effect performance under the …

28 Sep "Set-off" Principles. Posted at 13:39h in Business, Contract, Law by Crawford de Carne. The law around "set-off" principles in employment relationships is reasonably well settled. Courts have applied contractual law principles to focus upon what the parties agreed and the common law regarding the designation of payments by a debtor.

No. III.1 - Set-off (a) If two parties have claims against each other (reciprocal claims) that are of an identical nature, each party may set-off its claim against the other party's cross-claim, provided the party making use of its right to set-off is entitled to demand the other party's performance under its claim and is entitled to effect performance under the other party's cross-claim.

Legal set-off. This can only be resorted to as a defence to a court action and is available where the two claims are liquidated or ascertainable with certainty and are both due and payable at the commencement of the action. The two claims do not have to arise from the same transaction or closely connected transactions.

What is set-off? In certain circumstances, where two parties have monetary debts against each other, the right to set-off may arise. A right of set-off allows a ("Party 1") to take into account the amount owed to it by the second party ("Party 2") against any amount owed by Party 1 to Party 2, each party must be a debtor and a creditor.

principle known as set-off. In summary, the legal principle is that if A owes B R100 and B owes A R50 then A can deduct the R50 owed to him by B and only pay R50 to B in settlement of the debt. A has thus set-off R50 from the debt he owes to B. There are several legal requirements, exceptions etc. for this principle but this is the essence of it.

Insolvency set-off. The rules of insolvency set-off are mandatory and may not be varied by contract. Where a creditor proves in a liquidation, administration or bankruptcy, an account must be taken of the mutual dealings between the creditor and either the company in liquidation or administration or the bankrupt.The sums due from one party must be set off against the sums …