In the law of Canada today, there are two categories of set-off – legal and equitable. Legal set-off, flowing from 18th century English statutes, is anchored in two requirements – both obligations must be debts and both debts must be mutual cross obligations: see Holt v. Telford, 1987 CanLII 18 (SCC),  2 S.C.R. 193 at 204 per Wilson J.
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