Mutual Credits
A Dictionary of Law · Henry Campbell Black · 1891
A Dictionary of Law
In bankrupt law. Credits which must, from their nature, terminate in debts; as where a debt is dus from day, and which will then become a debt; or where there is a debt on one side, and a delivery ef property with directions to turn it into money on the other. & Taunt. 499; 2 Smith, Lead. Cas. 179. By thls phrase, in the rule under which courte of equity allow set-off in cases of mutual credit, we are to understand a knowledge on both sides of an existing debt due to one party, and acredit by the other party, founded on and trusting to such debt, as a means of discharging it.
9N.J.
Eq. 44 Credits given by two persons mutually; 4. 4, each giving credit to the other, It is a more extensive phrase than “mutual debts.” Thus, the sum credited by one may be due at once, that by the other payable in swturo; yet the credits are mutua!, though the transaction would not come within the meaning of “mutual debts.”
1 Atk. 230; ? Term R, 378.