Offset Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Offset, written in plain English, along with examples of how it is used.

What is Offset?

Legally it refers to the adjustment or counterclaim of a claim to make an effect of claim reduced, cancelled or adjusted. Its like nullifying the entry of a creditor and debtors in books of accounts if the creditor also owes something to debtor. Eg. John owes Micheal $ 5000. And Micheal owes John 3000$. The effect in books of accounts is shown as Micheals 3000$ being offset against his receiveable of $5000 from John and John just owes $ 2000 to micheal.