What are the principles of set-off in common law?
Alberta, Canada
The following excerpt is from RX-5 Holdings Inc v Tinman Welding and Maintenance Ltd, 2019 ABPC 170 (CanLII):
The common law principles of set-off can be distilled from paras 23 to 25 of Telford v. Holt 1987 CanLII 18 (SCC), [1987] 2 SCR 193: 1. The right of set-off is a right to set off mutual debts arising from transactions of a different nature which can be ascertained with certainty at the time of pleading. 2. Thus, no legal set-off can exist against a claim which sounds in damages, nor can a claim which sounds in damages be set off at law against a plaintiff's claim. 3. Set-off at law operates as a defence.
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