Meaning & use
setoff
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Meanings
nouncountablefinancelegal
An amount of money that someone owes you, which you can legally subtract from what you owe them, so that only the difference is paid.
Grammar: Countable; often used in phrases like 'a setoff against something'.
Patterns
- a setoff against something
- claim a setoff
- allow a setoff
The company argued that it was entitled to a setoff against the rent it owed.
After the setoff, she only had to pay $200 instead of the full $500.
The contract allows a setoff for any money already paid.
nouncountable
Something that makes a situation or quality seem better by contrast, or that balances a negative effect.
Grammar: Countable; often used with 'as a setoff to' or 'a setoff against'.
Patterns
- as a setoff to something
- a setoff against something
The beautiful garden was a setoff to the small, dark house.
Her cheerful manner was a setoff against the gloomy news.
The low price is a setoff to the poor location.
Word forms
| plural | setoffs |
|---|
Common combinations
- claim a setoff
- The defendant may claim a setoff for the damaged goods.
- a setoff against something
- The tax payment acts as a setoff against future liabilities.
- allow a setoff
- The judge allowed a setoff of $1,000 from the total debt.
- statutory setoff
- A statutory setoff automatically reduces the amount owed.
- as a setoff to something
- The bright colors were a setoff to the plain walls.
Synonyms and how they differ
- offset
- Offset is more common in everyday and business English for a thing that balances another; setoff is more technical and often legal.
- deduction
- Deduction is a general word for subtracting an amount; setoff specifically implies a legal right to subtract a debt.
- counterbalance
- Counterbalance is a physical or abstract weight that balances another; setoff is often about money or legal claims.
Word family
Commonly confused: setoff or set off? setoff or offset?
setoff vs set off
As two words, 'set off' is a phrasal verb meaning to start a journey or trigger something; the noun is written as one word or hyphenated.
setoff vs offset
Offset is a verb or noun meaning to balance or compensate; setoff is mainly a noun in legal and financial contexts.
Practice
The buyer owed $1,000, but the seller owed him $300 for repairs, so after the ______ he only paid $700.
Choose one answer.
The noun 'setoff' correctly names the legal subtraction of one debt from another. 'Set off' is a verb phrase, 'offset' is a verb or a different noun, and 'setting off' is a gerund, none of which fit after 'the' as a noun.
Make it your own
Write a sentence using “setoff”, then check it and compare it with the examples above.