Question

Right of set-off is exercised in case of

• A. Future debts
• B. Debts due and determined
• C. Contingent liabilities
• D. Money deposited for some other specific purpose

Answer 1

Answer:

B. Debts due and determined

The bank can adjust or “set-off” amounts owed by a customer against deposits only when the debts are due and certain, not for contingent or future obligations.