Jump to Content Jump to Main Navigation

20 Set-off

From: The Rome I Regulation on the Law Applicable to Contractual Obligations

Michael McParland

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 14 August 2022

Subject(s):
Choice of law clauses — Rome Convention — Rome I Regulation and choice of law

This chapter explains Article 17 of the Rome I Regulation. Set-off is a method of extinguishing reciprocal obligations. While the characterisation of set-off has caused difficulties in cross-border disputes, the practical problem is a choice of law. Article 17 aims to resolve the question of which law applies to determine the existence, nature, and effect of a claimed right to set-off. It is concerned with ‘the right to set-off’ rather than any procedural mechanisms involved. Article 17 only applies where the right to set-off arises from the ordinary principles of the identified applicable law. Such rights exist in several ways and under several labels within the national laws of Member States.

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.