setoff

A discharge or reduction of one demand by an opposite demand. Malle v Harrell, 118 Tex 149, 12 SW2d 550. A defense or an independent demand made by the defendant to counterbalance that of the plaintiff, in whole or in part. Mack v Hugger Bros. Constr. Co. 153 Tenn 260, 283 SW 448, 46 ALR 389. The right which exists between two persons, each of whom under an independent contract, express or implied, owes an ascertained amount to the other, to set off their mutual debts by way of deduction so that in an action brought for the larger debt, the residue, only after such deduction, may be recovered. Teeters v City Nat. Bank, 214 Ind 498, 14 NE2d 1004, 118 ALR 383. A counter demand which a defendant holds against a plaintiff, arising out of a transaction extrinsic to the plaintiff's cause of action. 20 Am J2d Countcl § 2. A money demand independent of and unconnected with the plaintiff's cause of action. Pekofsky v State, 15 Misc 2d 358, 180 NYS2d 930. In the broad sense, the discharge or reduction of one demand by an opposite one, or the right one party has against another to use his claim in full or partial satisfaction of what he owes to the other. 20 Am J2d Countcl § 2. Simply a mode of defense whereby the defendant acknowledges the justice of the plaintiff's demand on the one hand, but, on the other, sets up a demand of his own to counterbalance it, either in whole or in part. Peacock Hotel v Shipman, 103 Fla 633, 138 So 44; Steck v Colorado Fuel & Iron Co. 142 NY 238, 37 NE 1. In relation to transactions in futures, the method by which a contract to purchase is set off against a contract to sell without the formality of an exchange of warehouse receipts or actual delivery of the commodity, being in legal effect a delivery. Lyons Mill Co. v Goffe & Carkener (CAI 0 Kan) 46 F2d 241, 83 ALR 501. In respect of a decedent's estate:-the right of an executor or administrator, who is himself a creditor of the estate, to retain the amount of such debt out of the funds of the estate in his hands. A term used loosely for the right of an executor or administrator to deduct indebtedness due from a distributee. 31 Am J2d Ex & Ad § 567.