Mutual Credits

Credits given by two persons mutually, i. e., 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 futuro; yet the credits are mutual, though the transaction would not come within the meaning of mutual debts. 1 Atk. 230; 7 Term R. 378. And it is not necessary that there should be intent to trust each other. Thus, where an acceptance of A. came into the hands of B. who bought goods of A., not knowing the acceptance to be in B.'s hands, it was held a mutual cred- Smith, Lead. Cas. 179; 26 Barb. (N. Y.) 310; 4 Gray (Mass.) 284.

Credits given by 'two persons mutually, L e. 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 futuro; yet the credits are mutual, though the transaction would not come within the meaning of mutual debts; 7 Term 378. And it is not necessary that there should be Intent to trust each other: thus, where an acceptance of A. came into the hands of B, who bought goods of A, not knowing the acceptance to be in B’s hands, it was held a mutual credit; 3 Yes. 65; 2 Sm. Lead. Cas. 179; Jones v. Robinson, 26 Barb. (N. Y.) 310; Aldrich v. Campbell, 4 Gray (Mass.) 284; King r. King, 9 N. J. Eq. 44.

In bankrupt law. Credits which must, from their nature, terminate in debts; as where a debt is due from one party, and credit given by him to the other for a sum of money payable at a future day, and which will then become a debt; or where there is a debt on one side, and a delivery of property with directions to turn it into money on the other. 8 Taunt. 499 ; 2 Smith, Lead. Cas. 179. By this phrase, in the rule under which courts 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 a credit by the other party, founded on and trusting to such debt, as a means of discharging it. King v. King, 9 N. JEq. 44. Credits given by two persons mufually ; ♦. e., 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 futuro; yet the credits are mutual, though the transaction wonid not come within the meahing of "mutual debts." 1 Atk. 230; Atkinson v. Elliott, 7 Term R. 378.

Defined under Credit in Black's Law Dictionary.

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.