noun the act of setting off; a counterbalance or equivalent
verb to counterbalance or compensate for
In finance, setoff refers to the reduction of one debt by the amount of a counterclaim, which can be used to offset the original debt.
In legal contexts, setoff is a defense that allows a defendant to reduce or eliminate the amount of damages owed to a plaintiff by asserting a counterclaim.
In accounting, setoff is the process of balancing or offsetting one account against another to determine a net balance.
In banking, setoff can refer to the right of a bank to seize funds from a customer's account to cover a debt owed to the bank.
In the legal field, a writer may use the term 'setoff' when discussing the offsetting of debts between parties in a contract or agreement.
A psychologist may use 'setoff' when referring to the psychological concept of balancing or counteracting negative emotions or thoughts with positive ones.
An accountant may use 'setoff' when reconciling accounts and offsetting debits against credits to determine a final balance.
A construction manager may use 'setoff' when referring to the deduction of liquidated damages from payments due to a contractor for delays or defects in construction projects.
An insurance adjuster may use 'setoff' when deducting prior claims payments from a current settlement amount in order to avoid overpayment.