Definition of setoff
- a claim or amount used to reduce an opposing claim or debt
Usage examples of setoff
The contractor owed $5,000, but claimed a $1,000 setoff for materials the client failed to provide.
In the lawsuit, the tenant argued that repair costs should be treated as a setoff against unpaid rent.
A setoff reduces what one party must pay by subtracting a related amount owed by the other party.