Set-off

Set-off allows a debtor who is also a creditor of the same counterparty to neutralize reciprocal claims. Under Swiss obligations law it generally requires mutuality, claims of the same kind, enforceability of the claim used for set-off, and a declaration of set-off. It operates up to the lower amount and may be excluded or limited by law, contract or the nature of the claim. Set-off is practically important in commercial disputes, insolvency situations and banking, but its availability may be affected by special rules.