Set-off
A "set-off" occurs where cross-claims between the same parties are netted-off, so that only the difference is payable by one to the other. The possibility of a set-off can be of crucial importance when a wine producer is considering terminating relations with his UK distributor or agent.
Legal set-off
Is allowed where the two claims are liquidated, or ascertainable with certainty, and are both due and payable. They do not have to arise from the same transaction, or from closely connected transactions.
Equitable set-off
If the opposing claims are so closely connected that it would be manifestly unjust to allow one party to recover his claim in full without taking into account the other's counterclaim, then ......
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