What is the purpose of a lien?
Table of Contents
What is the purpose of a lien?
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan.
When can be exercise such a lien?
According to section 48 if the seller has delivered a part of the goods he can exercise his right of lien on the remaining part of the goods unless and until the part delivery was made under such circumstances as to show the right of lien had been waived because sometimes delivery of part may operate as delivery of …
What is right of set off?
The right of setoff is a legal right by a debtor to reduce the amount owed to a creditor by offsetting against it any amounts owed by the creditor to the debtor. For example, a bank can seize the amount in a customer’s bank account to offset the amount of an unpaid loan.
Is set off legal?
Legal set-off – a procedural remedy which applies only in litigation. It applies where there are mutual debts which are both due and payable at commencement of the action. The amounts of debts must be readily ascertained, therefore excluding unliquidated damages claims.
What is the effect of set off?
Effect of set-off:- In such a case, when the defendant claims set-off, he will stand in the position of the plaintiff in regard to the amount claimed by him. In such case, if the plaintiff doesn’t appear and his suit is dismissed for default, or he withdraws his suit, etc.
What is the purpose of set off?
The net claim is known as a net position. In other words, a set-off is the right of a debtor to balance mutual debts with a creditor. Any balance remaining due either of the parties is still owed, but the mutual debts have been set off.
When set off can be claimed?
The right to set-off dealt with by Order 8, Rule 6 of the Code is called a legal set-off. Legal set-off can be claimed under this rule only in respect of an ascertained sum of money legally recoverable by the defendant from the plaintiff arising out of two different transactions.
What is another word for set off?
What is another word for set off?
| depart | leave |
|---|---|
| embark | sally forth |
| set forth | set out |
| start out | set forward |
| set sail | hit the road |
What is set off and carry forward of losses?
Set off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. A set-off could be an intra-head set-off or an inter-head set-off.
What is difference between set off and counter claim?
Set-off is a statutory defence to a plaintiff’s action, whereas a counterclaim is substantially a cross-action. Set-off must be for an ascertained sum or must arise out of the same transaction as the plaintiff’s claim. A counter-claim need not arise out of the same transaction.
