16 Hong Kong
Edited By: William Johnston, Thomas Werlen, Frederick Link
- Contractual set-off — Insolvency set-off — Judicial set-off
This chapter provides an overview of the law of set-off in Hong Kong. Set-off in Hong Kong is classified into legal, contractual, equitable and bankruptcy set-off. The first three types of set-off are subject to common law principles, whereas set-off on bankruptcy is regulated by section 35 of the Bankruptcy Ordinance. The relevant principles applied to set-off are generally those of English common law. The chapter begins with a discussion of set-off outside insolvency, focusing on equitable set-off, legal set-off, and contractual set-off. It then considers set-off against insolvent parties, taking into account statutory set-off, before concluding with an analysis of cross-jurisdictional issues arising from the right of set-off.