Recoup

s To cut out a part: to keep back, withhold part of a sum demanded.

Recoupment

Reduction of a demand. " Recoupe " is synonymous with defalk or discount. ''Recoupment" is keeping back something alleged to be due, because there is an equitable reason for withholding it.6 For example, in an action for damages due on a contract, the defendant may recoup the damages he has sustained from the imperfect execution of the work.' Arises where there is an action upon a contract, or some obligation arising out of it, and there has been a breach of a divisible part of it or of such obligation. ^ Means a cutting back on the plaintiff's claim by the defendant. Properly applicable to a case where the same contract imposes mutual duties and obligations, and one part.y seeks a remedy for the breach of the ' Nesling v. Wells, 104 U. S. 438-41 (1881), cases, Matthews, J.; Moore v. Simonds, 100 id.

145 (1875); 1 Greenl.

Ev. § 484; 1 Story, Eq. §§ 403-4; 4 Wheat. 487. ' See 3 Bl. Com. 34, 37, 195. s Weaver v. Mining Co., 89 N. C. 189 (1883), cases. 'Wilson D. Horner, 59 Pa. 155 (1868); 10 Me. 1.34; 1 Chitty, Plead. 356. *F. recoupe^ a shred: recouper^ to cut again. Compare Coupon. • [Ives V. Van Bpps, 22 Wend. 166 (1839): Tomlins' Law Diet. duty by the second, and the second meets the demand by a claim for a breach of duty by the first. ^ It is the right to set off unliquidated damages. *' Set-off " comprehends only liquidated demands, or depiands which are capable of being ascertained by calculation.^ Anciently, it was applied to the right of deduction from the damages claimed by the plaintiff on account of part-payment, depreciation or failure of consideration, or some analogous act. The right is now recognized under the name of deduction or reduction of damages; while the meaning of recoupment has been greatly enlarged and changed — extended to crossdemands existing in favor of the defendant, and arising out of the same contract or transaction upon which the plaintiff founds his action.' See Defalcation; Set-opf.