set-off

1 of 2

noun

ˈset-ˌȯf

1

: the reduction or discharge of a debt by setting against it a claim in favor of the debtor

specifically : the reduction or discharge of a party's debt or claim by an assertion of another claim arising out of another transaction or cause of action against the other party

2

a

: a right to seek reduction or discharge of a debt or claim by countering a party's claim with an independent claim

b

: a counterclaim made by a defendant against a plaintiff for reduction or discharge of a debt by reason of an independent debt owed by the plaintiff to the defendant compare recoupment sense 2

set off

2 of 2

transitive verb

: to reduce or discharge by set-off : offset