Simple definition
A right to deduct one amount owed from another amount otherwise payable.
Payment
What Does Set-Off Mean?
A right to deduct one amount owed from another amount otherwise payable.
Example in a contract
The customer may set-off undisputed credits.
What set-off means in a contract
This term commonly appears in fees, invoicing, taxes, refunds, interest, late-payment, or reimbursement provisions.
Why it may matter
It can affect cash flow, timing, additional charges, and the consequences of delayed or disputed payment. Review the exact language rather than relying on the label alone.
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FAQ
Questions about set-off.
What does set-off mean in plain English?+
A right to deduct one amount owed from another amount otherwise payable.
Where might set-off appear in a contract?+
This term commonly appears in fees, invoicing, taxes, refunds, interest, late-payment, or reimbursement provisions.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.