• Ask a Legal Question
  • Submit Article
  • Law Dictionary
  • My Account
  • FAQ
  • Contact Us
  • Support
  • Site Search
Login or Sign up

The Law Dictionary

  • Home
  • Law Forum
  • Law Guide
  • Law Journal
  • Lawyers
  • Legal Forms & Files
  • Inbox
  • Alerts
Home » Law Dictionary » D » DEFALCATION

DEFALCATION

TheLaw.com Law Dictionary & Black's Law Dictionary 2nd Ed.

practice, contracts. The reduction of the claim of one of the contracting parties against the other, by deducting from it a smaller claim due from the former to the latter. 2. The law operates this reduction , in certain cases, for, if the parties die or are insolvent, the balance between them is the only claim; but if they are solvent and alive, the defendant may or may not defalcate at his choice. See Set off. 3. Defalcation also signifies the act of a defaulter. The bankrupt act of August 19, 1841, (now repealed), declares that a person who owes debts which have been created in consequence of a defalcation as a public officer, or as executor, administrator, guardian or trustee, or while acting in any other fiduciary capacity, shall not have the benefit of that law. The act of a defaulter; misappropriation of trust funds or money held in any fiduciary capacity; failure to properly account for such funds. Usually spoken of officers of corporations or public officials. Also set off. The diminution of a debt or claim by deducting from it a smaller claim held by the debtor or payor.

Related Posts:

  • SETOFF
  • RECOUPE
  • CLAIM IN EQUITY
  • STALE CLAIM
  • PARTIES TO ACTIONS
  • DEFALK

Filed Under: D

Add a New Legal Term

Can't find the legal word, term, phrase or abbreviation that you're seeking in our dictionary? Add or request a definition by filling out the short form below!

Add Dictionary Term
Sending

Law Dictionary & Guide App

Law App

Law App

Pro Law App

Pro Law App


  Over 2,000 Five Star Ratings

  •   Black's Law Dictionary 2nd Ed.
  •   Free: 14,000+ legal terms, Pro: 23,000+
  •   Law Guide & Law Journal
  •   Ask Questions & Get Answers
  •   Law Library & Lawyer Directory
  • Free Attorney Case Review

    Free legal consultation with a lawyer

    • About
    • FAQ
    • Contact
    • Disclaimer
    • Privacy
    • Legal Terms
    • Editorial Guidelines
    • © 1995 – 2016 TheLaw.com LLC
    Legal Disclaimer: The content appearing on our website is for general information purposes only. When you submit a question or make a comment on our site or in our law forum, you clearly imply that you are interested in receiving answers, opinions and responses from other people. The people providing legal help and who respond are volunteers who may not be lawyers, legal professionals or have any legal training or experience. The law is also subject to change from time to time and legal statutes and regulations vary between states. It is possible that the law may not apply to you and may have changed from the time a post was made. All information available on our site is available on an "AS-IS" basis. It is not a substitute for professional legal assistance. Before making any decision or accepting any legal advice, you should have a proper legal consultation with a licensed attorney with whom you have an attorney-client privilege. For purposes of New York and New Jersey State ethics rules, please take notice that this website and its case reviews may constitute attorney advertising.
    © Copyright 1995 - 2015 TheLaw.com LLC. All Rights Reserved
    Go to mobile version