What is "set-off"

Offset \Off"set`\, n. [Off + set. Cf. Set-off.] In general, that which is set off, from, before, or against, something; as:

1. (Bot.) A short prostrate shoot, which takes root and produces a tuft of leaves, etc. See Illust. of Houseleek.

2. A sum, account, or value set off against another sum or account, as an equivalent; hence, anything which is given in exchange or retaliation; a set-off.

3. A spur from a range of hills or mountains.

4. (Arch.) A horizontal ledge on the face of a wall, formed by a diminution of its thickness, or by the weathering or upper surface of a part built out from it; -- called also set-off.

5. (Surv.) A short distance measured at right angles from a line actually run to some point in an irregular boundary, or to some object.

6. (Mech.) An abrupt bend in an object, as a rod, by which one part is turned aside out of line, but nearly parallel, with the rest; the part thus bent aside.

7. (Print.) A more or less distinct transfer of a printed page or picture to the opposite page, when the pages are pressed together before the ink is dry or when it is poor; an unitended transfer of an image from one page to another; called also setoff.

8. See offset printing.

   Offset staff (Surv.), a rod, usually ten links long, used in measuring offsets.

n. 1 That which is set off against another thing; an offset. 2 (context dated English) That which is used to improve the appearance of anything; a decoration; an ornament. 3 (context legal English) A counterclaim; a cross debt or demand; a distinct claim filed or set up by the defendant against the plaintiff's demand. 4 (context printing English) An offset.

Set-off can refer to the following:

• Set-off (law), the reduction of a claim by deducting the amount of a valid countervailing claim
• Set-off (architecture), the horizontal line shown on a floorplan indicating a reduced wall thickness, and consequently the part of the thicker portion appears projecting before the thinner
• Set-off (printing), ink passing from one printed sheet to another because the ink has not had the chance to dry, which causes the sheets of paper to stick together

In architecture and masonry, the term set-off is given to the horizontal line shown on a floorplan indicating a reduced wall thickness, and consequently the part of the thicker portion appears projecting before the thinner. In plinths, this is generally simply chamfered. In other parts of stonework, the set-off is generally concealed by a projecting stringer. Where, as in parapets, the upper part projects (is "proud of") the lower, the break is generally hid by a corbel watertable. The portions of buttress caps which recede one behind another are also called sets-off.

In law, a set-off is an equitable defence to the whole or to a portion of a plaintiff's claim. A set-off is the right of a debtor to balance mutual debts with a creditor. In bookkeeping terms, set-offs are also known as reconciliations. To determine a set-off, simply subtract the smaller debt from the larger. Any balance remaining due either of the parties is still owed, but the remainder of the mutual debts has been set off.

• The legal defense of set-off (above) was originally introduced to prevent the unfair situation whereby a person ("Party A") who owed money to another ("Party B") could be sent to debtors' prison, despite the fact that Party B also owed money to Party A. The law thus allows both parties to defer payment until their respective claims have been heard in court. Upon judgment, both claims are extinguished and replaced by a single net sum owing (e.g. If Party A owes Party B 100 and Party B owes Party A 105, the two sums are set off and replaced with a single obligation of 5 from Party B to Party A).
• Set-off can also be incorporated by contractual agreement so that, where a party defaults, the mutual amounts owing are automatically set off and extinguished.
• In certain jurisdictions (including the UK), set-off takes place automatically upon the insolvency of a company. This means that, for each party which is both a creditor and debtor of the insolvent company, mutual debts are set-off against each other, and then either the bankrupt's creditor can claim the balance in the bankruptcy or the trustee in bankruptcy can ask for the balance remaining to be paid, depending on which side owed the most. This has been criticized as an undeclared security interest that violates the principle of pari passu. The alternative, where a creditor has to pay all its debts, but receive only a limited portion of the leftover moneys that other unsecured creditors get, poses the danger of 'knock-on' insolvencies.

The right to set off is particularly important when reporting a bank's exposures to regulatory authorities. The situation where a bank has to report that it has lent a large sum to a borrower (and is therefore exposed, because there is a risk that the borrower might default thereby leading to the loss of the bank's or its depositors' money) is thus replaced (where the bank has taken security over shares or securities of the borrower) with an exposure of the money lent minus the value of the security taken.

In printing, set-off is the term given to the unwanted transfer of ink from one printed sheet to another. The problem can occur with most types of printing, and is avoided by the use of slipsheets between copies (so any ink transfer occurs onto discardable paper) or anti-set-off spray powder.

The term in offset printing also refers to the unwanted transfer of ink to rollers and friction points throughout the printing press. Ink that is not properly dried or set can build up over time and cause marking on the finished product.

Additionally, some offset printing applications add moisture back into the paper after an offset heat set dryer. Water that does not have enough hardness will break down the calcium carbonate in the paper and cause build-up or set-off on later components of the press.