Latin quote · Money
Compensatio
“Set-off.”
Roman legal term
Translation
What does “Compensatio” mean?
Compensatio translates as “Set-off.”
In law it means cancelling out mutual debts between two people, so that only the difference has to be paid. If I owe you 100 and you owe me 60, compensatio leaves me owing 40.
Origin
The story behind it
Roman law developed compensatio as a way of settling cross-claims, and modern civil codes keep the rule under the same name.
When to use it
How to use “Compensatio”
A tidy term for an accounting or contract-law class on settling mutual debts.
- Latin
- Compensatio
- English
- Set-off.
- Source
- Roman legal term
- Era
- Legal Latin
- Theme
- Money
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