There was no set-off at common law. It was introduced into the law of England by statute (1728 2 Geo II c 22 and 1734 8 Geo II c 24) and made to apply only as between liquidated claims, although these claims may be unrelated. This is what we might call legal set-off. Equity then followed the law, and permitted a similar set-off where one of one or both of the claims was an equitable liquidated claim: see Clark v. Cort (1840) E.R. 449. This was a form of equitable set-off. These are in the first category described in Hanak.
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