English Law Basics · glossary

Set-off

A buyer’s right to set its damages against the price it still owes, so that the claim and the invoice net to one figure. On Frescalva’s terms Marrowby’s £25,000 comes off the last invoice, leaving £15,000 owed to Frescalva. Research note 3, answer (internal) · Chapter 5 · see Damages

Explained in Chapter 5, Breach of Contract, Damages and Remoteness of Damage, of English Law Basics.

The main page for this term is Set-off, in Civil Litigation.

How it comes up, in Chapter 5
Marrowby still owes the last invoice for the machines. The Sale of Goods Act 1979 lets a buyer set its damages against the price it still owes (section 53(1)(a)). Lawyers call this set-off. So the claim and the invoice net to one figure.
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Where this term lives

This term is part of one fictional business dispute, from the client's email to the advice letter, with every document attached and a test after every chapter. Open English Law Basics → · All terms A–Z →