SET-OFF UNDER THE LAWS OF THE NETHERLANDS ANTILLES AND ARUBA
Set-off is one of the most complex legal concepts
Set-off (a.k.a. compensation or – in the financial markets- netting) under the laws of the Netherlands Antilles and Aruba gives a debtor the possibility of compensating his debt by a claim of his creditor, in which case both obligations are extinguished up to the amount which they have in common. In other words: it is the extinguishing with closed pockets of a claim and a debt of two parties. Set-off is to some extent similar to paying your debt.
The law contains substantive requirements. For example, claims must be of a similar nature as well as collectible (due). To be able to set off a debtor should already be entitled to perform his obligation and should be able to force the other party to perform his counter-obligation.
This topic is one of the most complex and technical issues of both private law and insolvency law. Also, set-off in an international setting raises difficult questions. Very recently, the Dutch attorney Dennis Faber published his thesis on set-off consisting of more than 600 pages.
Karel Frielink
Attorney (Lawyer) / Partner
