| Commentary

57.1 Set-off

| Commentary

57: SET-OFF

(For set-off clauses see Form 57.1 [2043] onwards.)

57.1 Set-off

A set-off occurs when one party to a contract, who is due to pay to another party to that contract a sum of money, deducts part of that sum before paying it over, because of a debt owed by the other party to him.

The term ‘retention’ is sometimes used to mean ‘holding back’, as where a contract provides that a sum is not to be paid until the contract work is successfully completed, or that title to goods is retained by the seller until the price

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