NotesHit

2021-01-22

Probably every person doing business has at some time netted his receivables against those of his counterparty. This very convenient institution, also known as a deduction, is often used by entrepreneurs. However, our legislature has noted that it is sometimes abused by those aiming to delay payment of a debt to the other party. This is done by presenting debts that are disputed or even non-existent for deduction. This has sometimes led to significantly prolonged lawsuits, because when a defendant invokes a setoff, the court must thoroughly investigate such a claim and the existence of the claim being set off each time. Therefore, in the text of the 2019 amendments to the Code of Civil Procedure. included Art. 2031(1) of the Code of Civil Procedure, according to which only a defendant’s claim from the same legal relationship as the claim asserted by the plaintiff may be the basis for a charge of setoff, unless the defendant’s claim is uncontested or substantiated by a document not originating solely from the defendant. Thus, from now on, raising a charge of setoff during the course of a trial will be significantly limited.

 

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