Edited By: William Johnston, Thomas Werlen, Frederick Link
- Banks and cross-border issues — Contractual set-off — Insolvency set-off — Judicial set-off
This chapter provides an overview of the law of set-off in England and Wales, both prior to insolvency (whether by virtue of a contract or by operation of law) and in the event of a winding up or an administration of a company under English law. It begins with a discussion of set-off between solvent parties, focusing on contractual set-off, legal set-off, equitable set-off, and banker's right of set-off. It then considers set-off against insolvent parties, taking into account the relevant set-off rules, the mandatory nature of insolvency set-off, ‘due’ and contingent claims, mutuality of claims, and the rule on build-up of set-offs. It also examines insolvency clawbacks and concludes with an analysis of issues arising in cross-border set-off.