Selected Cases by Article & Issues
Article 8.10 Cases
(1) Where two parties owe each other money or other performances of the same kind, either of them ("the first party") may set off its obligation against that of its obligee ("the other party") if at the time of set-off,
(a) the first party is entitled to perform its obligation;
(b) the other party"s obligation is ascertained as to its existence and amount and performance is due.
(2) If the obligations of both parties arise from the same contract, the first party may also set off its obligation against an obligation of the other party which is not ascertained as to its existence or to its amount.
| Number | Issue | # Cases |
|---|---|---|
| 1 | Conditions of set-off in general | |
| 1.1 | Parties’ mutual obligations to each other | |
| 1.1.1 | Obligations must be held in the same capacity | |
| 1.1.2 | In case of assignment of rights (see art. 9.1.3) | |
| 1.1.3 | In case of transfer of obligations (see art. 9.2.7) | |
| 1.2 | Obligations of the same kind | |
| 1.2.1 | Monetary obligations | |
| 1.2.2 | Non monetary obligations | |
| 1.2.3 | Cash and securities | |
| 1.2.4 | Obligations of a personal nature | |
| 1.3 | First party’s obligation performable | |
| 1.4 | Other party’s obligation ascertained | |
| 1.4.1 | As to existence | |
| 1.4.2 | As to amount | |
| 1.5 | Other party’s obligation due | |
| 1.5.1 | Time for performance not yet arrived | |
| 1.5.2 | Natural or moral obligation | |
| 1.5.3 | Obligation suject to a condition | |
| 1.5.4 | Time-barred obligation (see art. 10.11) | |
| 1.5.5 | Other cases | |
| 2 | Special case where obligations arise from the same contract | |
| 2.1 | Other party’s obligation need not be ascertained as to existence or amount | |
| 3 | Set-off by agreement | |
| 3.1 | Netting agreements |