In order for insolvency compensation to be applied effectively, it is necessary to have mutual credits, mutual debts or other reciprocal transactions between the insolvent company and the creditor, although the extent to which insolvency compensation may apply to management companies is limited. Debt settlement. It is understood by the parties that the debtor has an unpaid debt to the creditor. By mutual interest of the parties, they agree that this unpaid debt will be qualified as paid, ______ Please comply with the full terms and conditions on our website. It should be noted that a reduction in professional services is generally not available. However, the courts have stated that a deduction (for example. B on an advisor`s fees) could be claimed by reduction if all or part of these recognized services have not been provided or so poorly provided that they have no value. It is rare for an employer to be able to prove that an advisor`s benefits (or part of them) have no value, so that in cases of professional negligence, it is much more common for employers to resort to the right of set-off or counter-claim. Reduction is a separate right and other than compensation. This is a defence that may be invoked by a defendant where the goods and services provided by the claimant do not justify the payment agreed by the defendant.
Therefore, the person who instructed the work may reduce the agreed price for that work because the work was not performed properly and/or was not completed. Although this is similar to compensation, the reduction is a way to adjust the amount to be paid, it is not necessary that there be a separate counterpart. . Example: An employer (“E”) enters into a contract with the Advisor (“C”) for C`s project management services, for which it is agreed that E will pay £50,000 (“Contract A”),E also enters into another contract with C for C`s engineering services, for which it is agreed that E will pay £80,000 (“Contract B”). .