1.

Write Brief Notes On Set-off, And The Requirements There For?

Answer»

Where two PARTIES have CLAIMS against each other, and the requirements for SETOFF are MET, the debts can extinguish each other. If they are not for the same amount, the smaller debt is extinguished and the larger debt is reduced by the amount of the smaller debt.

The following four requirements must be met for set-off to operate:

  • The debts must exist between the same two persons in the same
  • capacities
  • The debts must be of the same kind or NATURE
  • Both debts must be due and enforceable
  • Both debts must be liquidated

Where two parties have claims against each other, and the requirements for setoff are met, the debts can extinguish each other. If they are not for the same amount, the smaller debt is extinguished and the larger debt is reduced by the amount of the smaller debt.

The following four requirements must be met for set-off to operate:


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