ABSTRACT
The defence of abatement arises where a party asked to pay for work done or materials supplied can show that by reason of a claimant's breach of contract the value of the subject matter of a contract is less than a price agreed in that contract. The defence of set off allows a defendant to set against a sum otherwise due to a claimant an amount due from the claimant to the defendant. The essence of equitable set off is a situation in which it would be inequitable for the claimant to seek to enforce his rights against the defendant without recognising the defendant's claims against the claimant. The difference between set off and abatement will be felt by the parties materially in an insolvency context. In insolvency, where there is a defence of abatement, the solvent party will be obliged to pay his debt in full after allowance for such abatement to the trustee in bankruptcy.
