In short
Set-off lets one side hold back money it owes against money the other side owes it.
What it means for you
With set-off, a customer can pay less than an invoice when it says the supplier owes it money, for example service credits. Many supplier contracts rule out set-off, so the full amount is due and any claim is made separately.
Where to find it
In the payment clause, often in a sentence saying payments are made without set-off or deduction.
What to look for
- Whether set-off is allowed, ruled out or limited
- Whether it applies to both sides
- How it works with service credits and disputed invoices
How Gathersense helps
Commercial terms reads the payment clauses, including set-off, and shows the money in plain words.
