Netting Agreement
/ˈnɛtɪŋ əˌɡriːmənt/
Definitions
- (n.) A contractual arrangement by which parties consolidate and offset mutual obligations to determine a single net payment or settlement amount.
The parties executed a netting agreement to reduce their multiple payment obligations to a single net amount.
Forms
- netting agreements
Related terms
See also
Commentary
Netting agreements are crucial in financial law to mitigate credit risk and simplify settlement by reducing multiple obligations to one net amount.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.