The Guarantee Function Of Set-Off

Set-off had the guarantee function ever since it became the general cause for terminating a debt. But the function did not been realized until the economic is well developed. The guarantee function of the set-off is reasonable for it's respecting to equitable. Therefore, it's necessary to admit the guarantee function and regulate it by law.This article will start with the definition of set-off for the purpose of setting up the research subject. Then it will turn to the discussion of the guarantee function. We will make clear that the guarantee function is one of the functions of set-off. The function may not be emphasized at the beginning, but it becomes more and more important. Although set-off has the guarantee function, it still be one of the causes for terminating a debt and can not be classified as guaranty.Then through the research of the development of set-off, we can get that the guarantee function of set-off has been admitted by legislation in most countries, which is a reason for our legislation to do the same thing.However, only that other countries have admitted the guarantee function of set-off can not induce the conclusion that we should do the same thing. The essential reason for doing this is the guarantee function has it's own good cause. By the third part of the article, we will find that it is the equitable basic make the guarantee function of set-off reasonable.Then we will turn to the question that how to regulate the guarantee function of set-off. We will discuss the constitution of set-off and design an appropriate way to regulate the function. In the last part of the article, we will review the legislation on set-off of our country and make some comments and suggestions.