16 Set-off Agreements

16.01 Parties dealing with each other may enter into an agreement for the satisfaction of their cross-demands by bringing them into an account in a set-off. The set-off may be expressed to occur immediately or upon the happening of a specified future event, or it may be at the option of one of the parties. Generally, this is not objectionable.1 It merely constitutes an agreed method of payment.2 The agreement may not be effective, however, where trust moneys are in issue.3 Thus, if a customer has deposited trust moneys into an account with a bank, and the bank,...