What is set-off and when is it available?


Published by a ³ÉÈËÓ°Òô Banking & Finance expert
Practice notes
In-house

What is set-off and when is it available?


Published by a ³ÉÈËÓ°Òô Banking & Finance expert

Practice notes
In-house
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Set-off is a complex yet important concept in legal proceedings generally and for many different types of Transaction.

Independent set-off and transaction set-off can both be used as a Defence in legal proceedings. For more information, see Practice Notes: Independent set-off and transaction set-off and Pleading set-off.

In commercial transactions, transaction set-off will be an important right for a party who is claiming breach of contract as a defence to a claim for payment under that contract. Contracting parties may also specifically cater for set-off in their written contract, either by extending or limiting the scope of rights of set-off between them. For more information, see Practice Note: Contractual set-off.

Contractual set-off, insolvency set-off and banker's set-off will be important for many finance transactions. For more information, see Practice Note: Set-off in finance transactions.

Set-off is also frequently used in the construction industry to manage cash flow. For more information, see Practice Note: Set-off in construction.

Set-off can also often arise within the context of landlord and tenant relations with

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Rent definition
What does Rent mean?

Consideration payable under a lease, the amount of which must be ascertainable with certainty throughout the term (usual via a rent review if not stated in actual figures). Commercial rents are usually paid in advance by equal instalments on the quarter days or other dates specified as rent payment days.

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