Set-Off
/ˈsɛt.ɒf/
Definitions
- (n.) A legal assertion of a debtor’s right to reduce the amount owed by applying a counterclaim against the creditor.
The defendant claimed a set-off to reduce the damages owed to the plaintiff.
- (v.) To apply a debtor's claim against a creditor's claim thereby reducing the amount payable.
The company set-off its outstanding balance with the amount due from the supplier.
Forms
- set-offs
- sets off
- setting off
Related terms
See also
Commentary
Set-off is distinct from recoupment in that it often arises from mutual debts between parties, while recoupment is typically linked to the same transaction; drafting should specify the nature of claims involved.
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.