Offsetting of Claims

The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Offsetting of Claims

 

in civil law, one of the methods of settling obligations. It is possible, if three conditions are simultaneously present: only matching claims can be settled (by parties in which the same persons take part), the claims must be similar in their essence (for example, mutual claims for payment of money), and the claims must have become due. Claims are offset on the request of one of the parties. In the USSR, offsetting of claims is widely used as a method for clearing operations between socialist organizations through banks; the manner of settlement is governed by the regulations of the Gosbank (State Bank) of the USSR.

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.