Offsetting of Claims

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.

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Payment for shares sold may be made in cash, in kind, or by offsetting of claims against the Company.