A territory with 1 army on it is attacked by 1 army.
Both the defending and attacking armies die.
Now there should be 0 armies on the defending territory.
Can this situation occur? If so, who gets the territory?

You're correct in identifying that this is an edge case. Since WarLight requires that one army remain on every territory, it simply silently resurrects one defending army and gives the win to the defender. It doesn't show this in the animation so it's not very obvious that it's happening.

This is why it's rarely a good idea to attack 1v1 or 2v2.

Thank you! :)

in other words warlight players are dishonorable bastards who will never fight an equally matched battle
cowards!

It doesn't show this in the animation so it's not very obvious that it's happening.

This was shown previously (getting a minus one, but armies still remaining. I actually liked this previous situation more than the current one, because while it could be considered confusing when 1 - 1 = 1, but it actually gave a clearer picture of what happened.

I assume this behavior as a bug as it hinders me to make a really fair game, with 100% offence/defence loss.
So I propose the following solution.

Make this behavior configurable for users (at least members) as follows:

Drop Down Box with the following choices:

* Defenders Advantage (would be default as it is already)
* Attackers Advantage (just inverting the behavior for attackers)
* Neutralize target country (a total loss for the defender is possible, but with the possibility for the attacker not to capture it)
* Equal retreat (territory loss is not allowed but instead of prefering one side, both sides will have one remaining unit)

Some words why I am so motivated about this topic.
I really appreciate warlight and lots of people are trying to play their favourite game, e.g. Diplomacy (role play), Juggernaut or AI Generals are really good examples for this.

I would like to play the original diplomacy http://en.wikipedia.org/wiki/Diplomacy_%28game%29 in warlight. The only setting that cannot configured correctly is mentioned in this post. As I am a software developer myself I really understand the situation from the software side "it simply silently resurrects one defending army and gives the win to the defender". Therefore I assume it not so complex to make this specific behavior configurable for the user.

@Fizzer: What is your opinion about this topic/issue?