Edited By: William Johnston, Thomas Werlen, Frederick Link
- Banks and cross-border issues — Close-out netting — Contractual set-off — Insolvency set-off — Judicial set-off
This chapter provides an overview of the legal framework of set-off in Denmark. Under Danish law, set-off may be claimed without prior agreement between the parties. Certain basic set-off requirements, founded on general principles regulating set-off rights, are firmly established in Denmark. The chapter begins with a discussion of set-off between solvent parties, focusing on set-off by operation of law, expanded set-off by operation of law (connected claims), expanded set-off rights by agreement, and limitations on the right to set-off. It then considers set-off against insolvent parties, taking into account the relevant provisions in the Bankruptcy Act as well as close-out netting. It also analyses the law applicable to set-off between solvent parties and set-off between insolvent parties in the context of cross-border transactions.