Assistant Professor, Private & Islamic Law Group,Faculty of Law and Political Science, Shiraz University, Shiraz, Iran

Setoff is one of the effective measures to avoid prolonged processes in mutual transactions. Where two parties owe each other money or other obligations of same kind, either of the parties may counterbalance, of setoff, its obligations against that of the other. This may include: mutuality or reciprocity of the obligation, its homogeneity, certainty, and the due date. Based on the method of its performance, there are three types of setoff: unilateral setoff, procedural setoff, and also set off by an agreement. It is also is divided into independent and transactional setoff. There are statutory, contractual and procedural setoffs in the Iranian Law. In Shiite jurisprudence, one may find taqaas as equivalence to the term setoff. Conditions and effects of setoff are quite similar in the three domains but there are also differences in implementing it and its effects.