Legal Definition of recoupment
1 : the process or fact of recouping
recoupment of expenses
2a : a keeping back of all or part of a sum sought by a plaintiff in the interest of equity — see also equitable recoupment
b : a reduction in damages because of a demand by the defendant arising out of the same occurrence or transaction
c : the right of a defendant to have the claim of the plaintiff reduced or eliminated by reason of a breach of contract or duty by the plaintiff in the same occurrence or transaction also : an affirmative defense alleging such a breach
d : a counterclaim that arises out of the same occurrence or transaction as that of the original action — compare set-off
Note: Recoupment involves the type of claim that now must be asserted in a compulsory counterclaim.
Test Your Vocabulary
Slippery Words Quiz—Changing with the Times
- What is an earlier meaning of nice?

Test your visual vocabulary with our 10-question challenge!
TAKE THE QUIZ
A daily challenge for crossword fanatics.
TAKE THE QUIZLove words? Need even more definitions?
Merriam-Webster unabridgedWords at Play
Ask the Editors
Word Games
Slippery Words Quiz—Changing with the Times
Do you know these earlier meanings of words?
Take the quizWords of Snow and Ice Quiz
A selection of words from the chillier parts of t...
Take the quizName That Thing
Test your visual vocabulary with our 10-question ...
Take the quizWord Winder's CrossWinder Play the game
Share recoupment