1.Set-off can be exercised only in respect of debts that are certain and presently payable. 2.A bank can set off a customer’s deposit against a future or contingent liability. Which of the statements given above is/are correct?

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1.Set-off can be exercised only in respect of debts that are certain and presently payable.

2.A bank can set off a customer’s deposit against a future or contingent liability.

Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Answer:

Statement 1 is correct. Statement 2 is incorrect because future or contingent debts cannot be set off.