What is set-off in a contract?
Set-off clauses are written into legal agreements to protect the lender. A set-off clause allows the lender to seize assets belonging to the borrower, such as bank accounts, in the event of a default. Set-off clauses are also used by manufacturers and other sellers of goods to protect them from a default by a buyer.
What is set-off example?
We would like to set off for Paris by 10 o’clock tomorrow morning. As soon as the alarm went off it set off the dogs. We didn’t sleep at all. The fact that he cannot remember to take his books to school really sets me off.
What do you understand by set-off?
Legal Definition of set-off
(Entry 1 of 2) 1 : the reduction or discharge of a debt by setting against it a claim in favor of the debtor specifically : the reduction or discharge of a party’s debt or claim by an assertion of another claim arising out of another transaction or cause of action against the other party.
What is a set-off in civil case?
Also known as offset. In civil litigation, a setoff generally allows the defendant to subtract from the amount of damages that the plaintiff claims any amount that the plaintiff owes the defendant. …
What means set-off against?
(set something off against something) to compare one thing with another. The quality of the facilities must be set off against the cost of using them. Synonyms and related words. To compare or connect things.
What are the two types of set-off?
There are five main types of set-off:
- independent set-off (sometimes known as legal set-off or statutory set-off)
- transaction set-off (also known as equitable set-off)
- contractual set-off.
- insolvency set-off, and.
- banker’s set-off (sometimes known as current account set-off)
How do you use set off?
- 1to make a bomb, etc. …
- to make an alarm start ringing Opening this door will set off the alarm.
- to start a process or series of events Panic on the stock market set off a wave of selling.
- to make something more noticeable or attractive by being placed near it That blouse sets off the blue of her eyes.
Does set off mean separate?
If you want a verb, write it as two separate words: set off. … According to Black’s, offset (the noun) means “Something (such as an amount or claim) that balances or compensates for something else; SETOFF.”
What is set off in construction?
mechanism of set-off under may agree by the wordings of their. construction contracts in relation to contract to preclude a party to it from. issues of payment due to the Contractor.
What is legally set-off?
1. The right of someone who owes money to subtract from the debt any money owed in the other direction. 2. A defedant’s monetary demand against the plaintiff for some injury unrelated to the plaintiff’s claim.
What is set-off in taxation?
Set off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. A set-off could be an intra-head set-off or an inter-head set-off.
Is a set-off a payment?
Contractual set-off. Where payments are due from both parties to a transaction, the parties may agree that, instead of both parties making separate payments, the party due to make the larger payment should pay the difference between the two amounts due.