| Commentary

57.4 Extending right of set-off

| Commentary

57.4 Extending right of set-off

A provision extending the right of set-off to include all claims that one party may have against another (for example, arising under an unrelated contract) has been held to be valid1. If the right is to be extended, the clause will need careful drafting. It may need to address whether interest on a debt can be deducted, whether contingent or unascertained debts are to be included, and if so how they are to be calculated. There is a danger that if a set-off clause is too broad, it may be construed as a

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