The termination of contractual obligations – offsetting, reconsideration and waiver

Offsetting

If two persons owe each other money or similar and replaceable goods, it is possible for them to offset/to balance their mutual outstanding debts with each other under condition of maturity and solvency of both debts. The offsetting is also possible after prescription of one of the claims, if it would have been admissible before the expiry of the limitation period. The counterparty must be notified about the offsetting, but his consent is not needed. The two reciprocal claims shall be considered as extinct to the amount of the lower one as of the day on which the offsetting could have been made. If the debtor agreed to an assignment of the debt, he may not offset his obligation with the assigned one regarding his old creditor. When making an offset of a claim no time limits or conditions may be imposed, except for the condition that the offsetting shall be taken into account only in case the claim is brought to court. Claims that can not subject to legal enforcement, claims that arose from intentionally unlawful acts and tax claims may not be set off without the creditor’s consent.

Reconsideration/Resumption

If the debt is renewed with another one with the creditor’s consent, the debt may be reconsidered. In these instances, the securities of the old debt remain in force if their providers have given their consent.

Waiver

The claim may be waived if the creditor renounces his claim by a contract with the debtor.