12 Mutuality – Same Parties

12.01 In the absence of an agency or a trust relationship which brings about mutuality in equity or, alternatively, before bankruptcy or liquidation, of a set-off agreement between the parties,1 A's right to sue B may not be set off against A's indebtedness to C.2 This applies in circumstances where B and C are related companies,3 and also where C is a director of company B4 or is the beneficial owner of company B.5 12.02 The requirement of same parties often arises in the context of joint debts and demands. Joint debtors may employ the debt in a set-off against a...