What is equitable offset?

Equity Offset is like carbon offset. Carbon offset, in simplistic terms, works like this: Companies or individuals pay for trees to be planted, or parks to be cleaned up, or other things that reduce carbon or other greenhouse gas emissions, in order to offset their own negative environmental impact.

What is the rule of set-off?

A set-off clause is a legal clause that gives a lender the authority to seize a debtor’s deposits when they default on a loan. A set-off clause can also refer to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims.

Can you exclude equitable set-off?

Equitable set off is a less well defined defence, which is still available in NSW due to section 21(4) of the Act. It can involve unliquidated claims and can also be excluded by contract.

Is equitable set-off a defence?

There are two types of set-off, legal and equitable, and both are normally advanced as defences. They involve the ‘set-off’ between parties of mutual debts or claims against each other.

What is equitable set-off example?

For instance, in a suit by the bank, when the defendant filed for a counter claim as there was a delay in sanctioning the loan by the bank due to which he had suffered losses; the court cleared that such a claim of the defendant was not a counter claim but an equitable set off.

When can set-off be applied?

Since section 133(1)(c) of the Companies Act specifically states that set-off may be applied against any claim made by the company under business rescue in any legal proceedings, it could be argued that once a company is under business rescue, set-off cannot be applied under any circumstances outside of the narrow …

When can a set-off be claimed?

The right to set-off dealt with by Order 8, Rule 6 of the Code is called a legal set-off. Legal set-off can be claimed under this rule only in respect of an ascertained sum of money legally recoverable by the defendant from the plaintiff arising out of two different transactions.

How many types of set-off are there?

There are two types of set off: Legal set off. Equitable set off.

How do you apply a set-off in law?

This process is based on an old legal principle known as set-off. In summary, the legal principle is that if A owes B R100 and B owes A R50 then A can deduct the R50 owed to him by B and only pay R50 to B in settlement of the debt. A has thus set-off R50 from the debt he owes to B.

What is the purpose of set-off?

A set-off is the subtraction or taking away of one demand from another opposite or cross-demand, to distinguish the smaller demand and reduce the greater by the amount of the less; or, if the opposite demands are equal, to extinguish both[1].