Where there are mutual debts between the plaintiff and defendant, one debt may be settled against another. This can be a statutory defence to a plaintiff’s action and it is called as

All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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Where there are mutual debts between the plaintiff and defendant, one debt may be settled against another. This can be a statutory defence to a plaintiff’s action and it is called as

A: cross-claim

B: set-off

C: cross-demands

D: cross-decrees

The answer is: B

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Explanation

The correct answer is B: set-off.

Explanation:

Set-off is a legal principle that allows mutual debts between the plaintiff and defendant to be settled against each other. In other words, if both the plaintiff and defendant owe each other money, the court may allow one debt to be used as a defense against the other. This can help balance the claims and determine the net amount that one party owes the other. Set-off is a common legal defense in many jurisdictions and is often used to prevent multiple lawsuits over related debts.