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Right of set-off
A debtor’s legal right, by contract or other means, to settle or otherwise eliminate all or a portion of an amount due to a creditor by applying against that amount an amount due to the debtor from the creditor.
In certain circumstances, a debtor may have a legal right to apply an amount due from a third party against the amount due to a creditor, provided that there is an agreement among the three parties that clearly establishes the debtor’s right of set-off.
Translations
Synonyms and variations
- Right of offset
- Right of setoff