Contracts and obligations · Legal glossary
Set-offIn Arabic: المقاصة
Definition
Set-off extinguishes two mutual debts between the same persons, up to the smaller of the two, from the time both are eligible for set-off.
How it varies across the GCC
Article 284 of the Saudi Civil Transactions Law states the effect of set-off. The clause is common in supply contracts and in releases that net reciprocal accounts.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Civil Transactions Law, art. 284https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1