| n. | 1. | That which is set off against another thing; an offset. |
| 2. | That which is used to improve the appearance of anything; a decoration; an ornament. | |
| 3. | (Law) A counterclaim; a cross debt or demand; a distinct claim filed or set up by the defendant against the plaintiff's demand. | |
| 4. | (Arch.) Same as Offset, | |
| 5. | (Print.) See Offset, 7. |
SET-OFF, contracts, practice. Defalcation; (q.v.) a demand which a defendant
makes against the plaintiff in the suit for the purpose of liquidating the
whole or a part of his claim.
2. A set-off was unknown to the common law, according to which mutual
debts were distinct and inextinguishable except by actual payment or
release. 1 Rawle's R. 293; Babb. on Set-off, 1.
3. The statute 2 Geo. II., c. 22, which has been generally adopted in
the United States with some modifications however, allowed, in cases of
mutual debts, the defendant to set his debt against the other, either by
pleading it in bar, or giving it in evidence, when proper notice had been
given of such intention, under the general issue. The statute being made for
the benefit of the defendant, is not compulsory; 8 Watts, R. 39; the
defendant may Waive his right, and bring a cross action against the
plaintiff. 2 Campb. 594; 5 Taunt. 148; 9 Watts, R. 179
4. It seems, however, that in some cases of intestate estates, and of
insolvent estates, perhaps owing to the peculiar wording of the law, the
statute has been held to operate on the rights of the parties before action
brought, or an act done by either of them. 2 Rawle's R. 293; 3 Binn. Rep.
135; Bac. Ab. Bankrupt K.
5. Set-off takes place only in actions on contracts for the payment of
money, as assumpsit, debt and covenant. A set-off is not allowed in actions
arising ex delicto, as, upon the case, trespass, replevin or detinue. Bull.
N. P. 181.
6. The matters which may be set off, may be mutual liquidated debts or
damages, but unliquidated damages cannot be set off. 1 Black. R. 394; 2
John. 150; 8 Conn. 325; 1 McCord, 7; 3 Wend. 400; 1 Stew. & Port. 19; 2
Yeates, 208; 1 Sumn. 471; 2 Blackf. 31; 1 A. K. Marsh. 41; 6 Halst. 397; 5
Wash. C. C. 232 3 Bibb, 49; 2 Caines, 33. The statutes refer only to mutual
unconnected debts; for at common law, when the nature of the employment,
transaction or dealings necessarily constitute an account consisting of
receipts and payments, debts and credits, the balance only is considered to
be the debt, and therefore in an action, it is not necessary in such cases
either to plead or give notice of set-off. 4 Burr. 2221.
7. In general, when the government is plaintiff, no set-off will be
allowed. 9 Pet. 319; 4 Dall. 303. See 9 Cranch, 313; Paine, 156. But when an
act of congress authorizes such set-off, it may be made. 9 Cranch, 213.
8. Judgments in the same rights may be set off against each other at
the discretion of the court. 3 Bibb 233; 3 Watts 78; 3 Halst. 172; 4 Hamm.
90; 1 Stew. & Port. 24; 7 Mass. 140, 144; 8 Cowen 126. Vide Compensation;
also Montagu on Set-off; Babington on Set-off; 3 Stark. Ev. h.t.; Amer. Dig.
h.t.; Whart. Dig. h.t.; 3 Chit. Bl. Com. 304, n.; 1 Chit. Pl. Index, h.t.; 8
Vin. Ab. 556; Bac. Ab. h.t. 1 Sell. Pr. 321; 5 Com. Dig. 595; 6 Id. 335; 7
Id. 336; 8 Id. 927; Chit. Pr. Index, h.t.; Bouv. Inst. Index, h.t. Vide
Factor.