Defalcation
A Law Dictionary, Adapted to the Constitution and Laws of the United States · John Bouvier · 1839
A Law Dictionary, Adapted to the Constitution and Laws of the United States
practice, contracts. Is the reduction of the claim of one of the contracting parties against the other, by deducting from it a smaller claim due from the former to the latter. The law operates this reduction, for, if the parties die or are insolvent, the balance between them is the only word, see Bracken.
Law Misc. 186; 1 Rawle’s R. 291; 3 Binn. R. 135.