Mutuality definition

Mutuality means that the debt being offset is due from the same person or entity to whom the person attempting to offset the debt owes an obligation.35 Because of the mutuality requirement in section 553(a) of the Bankruptcy Code, courts have routinely held that triangular setoffs (i.e. when a party (A) offsets the debt owed by one party (B) against the debt owed to
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Mutuality means that the debt being offset is due from the same person or entity to whom the person attempting to offset the debt owes an obligation.
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Mutuality means that the debt being offset is due from the same person or entity to whom the person attempting to offset the debt owes an obligation.48 Because of the mutuality requirement in section 553(a) of the Bankruptcy Code, courts have routinely held that triangular setoffs (i.e. when a party (A) offsets the debt owed by one party (B) against the debt owed to another party (C)) are impermissible in bankruptcy.49 Further, because each corporation is a separate entity from its affiliates, a subsidiary's debt may not be set off against the credit of a parent or other subsidiary, or vice versa, because no mutuality exists under the
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Examples of Mutuality in a sentence

  • And the relationship should also model an effective Intentional Peer Support relationship by embracing a way of working together that Is based on a genuine (open and honest) Connection between the parties; welcomes and respects different Worldviews; understands that Mutuality means an absence of power or privilege in the relationship; and expects that Moving Towards recovery is a journey together.

  • As prescribed in 570.603, insert the following clause: Mutuality of Obligation (SEP 1999) The obligations and covenants of the Les- sor, and the Government’s obligation to pay rent and other Government obligations and covenants, arising under or related to this Lease, are interdependent.

  • The working relationship between the parties to this Agreement is expected to reflect the peer support values as expressed in the MSA Peer Support Guidelines: Mutuality; Recovery & Hope; Experiential Knowledge; Self-determination; Participation and Equality.

  • Mutuality is one of the characteristics of a contract, and its validity or performance or compliance cannot be left to the will of only one of the parties.

  • Mutuality of performance, S's estate can easily hand over the car to C and likewise, it will be easy for C to cut a check for $300,000.

  • Mutuality of Obligation for Agreements with Consideration De Los ▇▇▇▇▇▇ ▇.

  • Mutuality and reciprocity – the Parties agree to be mutually understanding, focus on mutual sustainability, mutually plan longer-term reciprocal strategies, share difficulties and challenges more urgently, and be accountable to each other This Contract does not preclude any Party from cooperating independently with humanitarian, development, and peacebuilding organizations.

  • Mutuality and reciprocity – the Parties agree to be mutually understanding, focus on mutual sustainability, mutually plan longer-term reciprocal strategies, share difficulties and challenges more urgently, and be accountable to each other.

  • Mutuality comes into play with respect to claims you may have against the company, non-disparagement / non-defamation clauses, confidentiality, attorneys fees, etc.

  • Mutuality required for mutual promise to be consideration / enforceable Illusory contracts, lacking mutuality of obligation, are unenforceable.


More Definitions of Mutuality

Mutuality means that the debt being offset is due from the same person or entity to whom the person attempting to offset the debt owes an obligation.40 Because of the mutuality requirement in section 553(a) of the Bankruptcy Code, courts have routinely held that triangular setoffs (i.e. when a party (A) offsets the debt owed by one party (B) against the debt owed to another party (C)) are impermissible in bankruptcy.41 Further, because each corporation is a separate entity from its affiliates, a subsidiary's debt may not be set off against the credit of a parent or other subsidiary, or vice versa, because no mutuality exists under the circumstances.42 Thus, in non-bankruptcy terms, setoff is only allowed between two parties—e.g. A owes B $500 and B owes A $400—who have mutual debts. Due to the “mutuality” requirement, setoff is not allowed between three parties, even if the other parties are affiliates of each other—e.g. A owes B $500 and C (B’s subsidiary) owes A $400—and even if the parties contractually agree that such debts may be set off.
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Mutuality requirement means that the claims to be set off must be between the same parties in the same rights, that is, of the same character. In addition, such “mutuality” requirement means that the equitable or beneficial interest of the parties in the claims must be considered. So where a debt owed to the insolvent company has been assigned, set-off cannot be asserted in the insolvency of the assignor since the beneficial owner is no longer the assignor, but the assignee.
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Mutuality means that the contributors and the beneficiaries are identical. Since one cannot make profit by dealing with himself, there cannot be any taxable income wherever such concept applies.
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Mutuality means that fund members jointly accumulate the reserves required to provide benefits. The persons eligible to receive services shall have equal rights in re- spect of access. Each fund member has an ownership stake in the fund.
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Mutuality between parties.58 Maturity means that both obligations are already due. Where Bank A owes Bank B now, but Bank B owes Bank A tomorrow, there can generally be no setoff.59 Mutuality means that obligations must be owed between the same parties.60 A situation where Bank A owes $1 million to Bank B, and Bank B owes $1 million to Bank C, does not meet the requirement for mutuality, so Bank B would have to pay Bank C, and be paid by Bank A. To fulfill these rather strict requirements, banks can operate as members of a clearinghouse. Clearinghouse rules determine that all obligations are due at the end of the day (thereby fulfilling the maturity requirement) and all obligations are owed to and from the clearinghouse (thereby fulfilling the mutuality requirement).61 The largest payments clearinghouse in the U.S. dollar is called CHIPS and during 2020 it cleared about $1.5 trillion daily.62 Because it seems like reserves are not required for netting,63 netting appears to represent a kind of independence of bank money creation from public money. As discussed below, this mindset, emphasizing the importance of private arrangements, sits comfortably within the conventional view, and is one of the reasons for its abstraction from clearing.
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Related to Mutuality

  • Success means that the Client’s claim is finally decided in his or her favour, whether by a court decision or an agreement to pay damages or in any way that results in the Client deriving a benefit from pursuing the Claim.

  • Reward means any goods, services, benefits, arrangements or other privileges (including, without limitation, miles on participating airline frequent flyer programs, payment of annual Cardmembership fees or rebate), as may be determined by the Bank in its reasonable discretion, which may be redeemed or obtained by the use of Points under the Program; and S$ means the lawful currency of the Republic of Singapore.

  • Rewards means any Merchandise Reward, Travel Reward, Gift Card Reward or Account Credit Reward that is available in this Program; and

  • Reciprocity means the recognition of a teaching license from another state or country based on these Rules or the terms of the National Association of State Directors of Teacher Education and Certification (NASDTEC) Interstate Agreement for Educator Licensure.

  • Sexual motivation means that one of the purposes for which