Multiple choice

Which of the following propositions is/are correct?

(I) Legal set off requires a court fee, but no court-fee is required in the case of an equitable set off. (ii) In a legal set off, amount claimed can be time barred and in an equitable set off, claim cannot be allowed if it is time barred. (iii) In a legal set off, it is not necessary that cross demands arise out of same transaction and in an equitable set off, cross demands must arise out of the same transaction. (iv) Legal set off can be for any amount not ascertained and an equitable set off may be allowed only for an unascertained amount.

  1. Only (i) is correct

  2. Only (i) and (iii) are correct

  3. Both (i) and (iv) are correct

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In legal set off, claim need not originate from the same transaction and in equiatable set off, claim must originate from the same transaction.  In legal set off, the sum must be ascertained, but in equitable set off, the sum need not be ascertained.

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