Set‑off / Compensation

Set‑off (compensation) is a legal technique that allows two parties to cancel out mutual debts up to the lower amount. Under the Civil Code, five conditions apply: debts must be mutual, certain, due, of the same kind, and between the same parties. Set‑off may occur automatically but can be contractually excluded. In collection cases, it is often disputed, especially when a debtor attempts to offset unrelated claims.

Updated: 11/03/2026

The definitions presented in this section reflect the Belgian context, unless stated otherwise. The texts are intended to summarise the concepts in everyday language and should not be regarded as exhaustive or definitive. Suggestions or adjustments may always be sent to glossary@tcm.be.