Defalcation – This legal term has several meanings: 1. It means defaulting on a debt or other obligation such to account for public or trust funds. Usually the term is used in the context of public officials. 2. Defalcation has another legal meaning referring to the setting-off of two debts owed between two people by the agreement to a new, this time smaller amount representing the outstanding balance. This is a type of novation.

Posted in: D