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Simple English definitions for legal terms
concursus debiti et crediti
Read a random definition: IFP
A quick definition of concursus debiti et crediti:
Concursus debiti et crediti: This is a legal term used in Scots law which means when someone owes money to another person and that person also owes money to the first person, they can use this to cancel out the debts. For example, if A owes B £10 and B owes A £5, they can use concursus debiti et crediti to cancel out the debts and A only needs to pay B £5. However, if a company is involved, it is treated as a separate person and cannot use this to cancel out debts.
A more thorough explanation:
Definition: Concursus debiti et crediti is a Latin term used in Scots law that refers to the running together of debt and credit. It is necessary to support a plea of compensation, where the parties must be debtor and creditor, each in their own right and at the same time.
Example: If A sues B for payment of a debt due by him, B may plead in compensation a debt due to him by A, and here there is the necessary concurrence. However, if the firm of which A is a partner sues B for a debt due by him to them, and B pleads in compensation on the ground of a private debt due by A, the plea will not be sustained, for there is no concursus. This is because a company is regarded by the law as a separate person.
This means that in order for a plea of compensation to be valid, there must be a concurrence of debt and credit between the parties involved. If there is no concursus, the plea will not be sustained.