A more thorough explanation:

Term: de liquido in liquidum
Definition: De liquido in liquidum is a legal term used in Scots law to describe the process of offsetting a liquid claim against another liquid claim. This means that if someone owes money to another person, and that person also owes money to the first person, the debts can be cancelled out. For example, if John owes $100 to Mary and Mary owes $50 to John, the debts can be offset and John only needs to pay Mary $50.
Example: John and Mary are business partners. John owes Mary $100 for supplies she purchased for their business, but Mary also owes John $50 for a loan he gave her. Instead of John paying Mary the full $100, they can use de liquido in liquidum to offset the debts. John will only need to pay Mary $50, and the debts will be considered settled.
This legal term is important because it allows for a more efficient and fair way of settling debts between parties. It prevents one party from having to pay more than they owe, and it simplifies the process of resolving disputes.