In some cases, the business relationship between Party A and Party B are such that they each are both debtor and creditor vis-à-vis the other party. In that case, if Party B fails to pay the amount due to Party A, then Party A can decide to "setoff" (also called "Offset" or compensate), and reduce the amount it owes to Party B, so as to be synthetically reimbursed of all or part of the amount owed.

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