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Meaning of Defalcaton

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  • (law) The act of cancelling part of a claim by deducting a smaller claim which the claimant owes to the defendant.
- The Nuttall Encyclopedia

De`fal*ca"tion (?), n. [LL. defalcatio: cf. F. défalcation.] 1. A lopping off; a diminution; abatement; deficit. Specifically: Reduction of a claim by deducting a counterclaim; set- off. Abbott.

2. That which is lopped off, diminished, or abated.

3. An abstraction of money, etc., by an officer or agent having it in trust; an embezzlement.

- Webster's Unabridged Dictionary (1913)

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The correct spelling of this word ought to be: Defalcation

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