Why is a “No set-off” clause essential?
A “set-off” occurs where cross-claims between the same parties are netted-off, so that only the difference is payable by one to the other. The possibility of a set-off can be of crucial importance when a wine supplier needs to sue for the price of wine supplied.
The commercial issue, usually, is whether the supplier is entitled to immediate judgment on its claim for the price of goods supplied to the buyer, or has to wait until the trial of the buyer’s counterclaims for alleged breaches of the supply agreement. It will often make a big difference to the dynamics of the situation, and to each side’s tactics, if the buyer can be forced to stump up the money due for wine supplied immediately.
If you would like to consider putting effective Conditions of Supply in place, or would like us to run a Free Diagnostic Check on the ones you are using, please get in touch.
Except where otherwise stated, all information given and any legal opinions expressed on this website assume that English law applies. See Conditions of use.