Set Off - Definition - Law Dictionary Home Dictionary Definition set-off

set-off

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1 : the reduction or discharge of a debt by setting against it a claim in favor of the debtor
;specif
: 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
2 a : a right to seek reduction or discharge of a debt or claim by countering a party's claim with an independent claim
b : a counterclaim made by a defendant against a plaintiff for reduction or discharge of a debt by reason of an independent debt owed by the plaintiff to the defendant compare recoupment