Edited By: William Johnston, Thomas Werlen, Frederick Link
- Banks and cross-border issues — Guarantees and security — Contractual set-off — Judicial set-off
This chapter discusses the law of set-off in Finland. Under Finnish law, set-off between solvent parties may occur when there is a unilateral notice by either party to the other party (compulsory set-off) or when an agreement is reached between the parties. In the case of compulsory set-off, both the main receivable and counterclaim must be reciprocal, of the same kind, and valid, undisputed and due for payment. The chapter first provides an overview of set-off between solvent parties, focusing on compulsory set-off, contractual set-off, cash management, security interests, set-off in connection with transfer of receivables, and set-off in foreclosure. It then considers set-off against insolvent parties and concludes with an analysis of issues arising in the cross-border context.