Setoff
A defendant's right to reduce the plaintiff's claim by an amount the plaintiff owes the defendant, arising from a different transaction.
Encyclopedia entry: Setoff
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setoff
A setoff is the right of someone who owes money to subtract from the debt any money owed in the other direction.
A setoff is also a defendant ’s monetary demand against the plaintiff for some injury unrelated to the plaintiff’s claim . This allows the defendant to assert their own financial claim against the plaintiff, effectively reducing or eliminating the amount they owe.
[Last reviewed in June of 2024 by the Wex Definitions Team
]
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.