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Simple English definitions for legal terms
compensatio
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A quick definition of compensatio:
Compensatio is a legal term from ancient Rome that means balancing or weighing. In modern law, it refers to a defendant's right to reduce the amount they owe to a plaintiff by the amount the plaintiff owes them. This is also called setoff. For example, if someone owes you $100, but you also owe them $50, you can use compensatio to reduce what you owe to $50. This is different from a counterclaim, which is a separate claim made by the defendant against the plaintiff.A more thorough explanation:
Definition: Compensatio (kom-pen-say-shee-oh) is a term from Roman law that refers to a defendant's claim to reduce the plaintiff's demand by the amount that the plaintiff owes the defendant.
For example, if a plaintiff sues a defendant for $10,000, but the defendant can prove that the plaintiff owes them $5,000, the defendant can claim compensatio and reduce the plaintiff's demand to $5,000.
Compensatio is also known as setoff in common law. It allows a defendant to counterbalance the plaintiff's claim with their own independent claim arising from a separate transaction. This means that the defendant can reduce the amount they owe the plaintiff by the amount the plaintiff owes them.
For instance, if a plaintiff sues a defendant for $10,000 for breach of contract, but the defendant can prove that the plaintiff owes them $7,000 for services rendered, the defendant can claim setoff and reduce the amount they owe the plaintiff to $3,000.
Compensatio or setoff is a legal defense that can help defendants reduce their liability in a lawsuit. It is based on the principle of fairness and prevents plaintiffs from recovering more than they are entitled to.