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Set-Off
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An alleged cross claim by a defendant against the plaintiff which, if successful, would result in the reduction of elimination of the plaintiff's claim.
In Nesi Energy, relying in part on Halsbury's Laws of England, the Alberta Court of Queen's Bench adopted these words:
"Set-off is a two-way street.
"By definition, it requires that there be cross-claims between the parties.
"Where A has a claim for a sum of money against B and B has a cross-claim for a sum of money against A such that B is, to the extent of his cross-claim, entitled to be absolved from payment of A’s claim, and to plead his cross-claim as a defence to an action by A for the enforcement of his claim, then B is said to have a right of set-off against A to the extent of his cross-claim.
"The existence of a cross-claim is prerequisite."
In his book on the subject, jurist Derham, after issuing the typical law author caution about how "difficult" it is to define a word upon which he then proceeds to write a 921-page book(!), says that set-off:
"... can be defined as the setting of money cross-claims against each other to produce a balance.
"The essence of set-off ... is the existence of cross-demands."
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