§ 26. Set-off can sometimes be used even if the claim is time-barred

§ 26 is an exception to the strict rule in § 24. § 24 says that you lose the right to performance (oppfyllelse) when the claim becomes time-barred. § 26 says that in some cases you can still use a time-barred claim for set-off.

Set-off means that two claims are deducted from each other. If you owe me NOK 10,000, and I owe you NOK 7,000, we can settle by deducting the claims from each other. One of us is then left with a net NOK 3,000. Instead of both paying each other, the claims are offset against each other.

This can also be relevant when one of the claims is time-barred. The main rule is that a time-barred claim cannot be demanded paid. But § 26 says that the right of set-off is not necessarily lost. You can still use the claim as a defence against a claim from the other party, if the conditions are met.

Letter a is the simplest. If the right of set-off has been agreed, it can survive even if the claim is time-barred. In other words, the parties may have agreed that claims can be set off in a particular way. Then the agreement must be read.

Letter b applies to claims that arise from the same legal relationship. This means that the claims must be closely connected. They must come from the same agreement, the same settlement or the same relationship between the parties. It is not always enough that the parties know each other or have had several different agreements.

In addition, the claim you are setting off against must have arisen before the time-barred claim became time-barred. This prevents you from using an old time-barred claim against a completely new claim that arises later without a close connection.

§ 26 is important because set-off often feels fair. If two claims are connected, it may seem unreasonable that one party can demand the full amount, while the other cannot use their counterclaim just because the deadline has passed. The law therefore gives limited access.

Can I avoid paying by using set-off?

Yes, sometimes. If you have a claim against the person demanding money from you, you can use the claim for set-off. If your claim is time-barred, you must check whether § 26 still allows you to use it.

The first question is whether you have agreed on a right of set-off. It may be stated in the contract. It may also follow from an agreed settlement arrangement. If the agreement clearly says that claims can be set off, letter a can help.

If it has not been agreed, you must look at letter b. Then the claims must arise from the same legal relationship. This could, for example, be the same tenancy agreement, the same tradesman's job, the same purchase agreement or the same financial settlement.

Imagine a tradesman demands final payment. You believe the tradesman owes you a price reduction (prisavslag) for defects (mangler) in the same job. Even if your claim for a price reduction is time-barred, you may be able to use it for set-off if the tradesman's claim and your claim arise from the same job. Then § 26 is relevant.

But if the tradesman demands payment for a new job in 2026, and you want to set off a time-barred claim from a completely different job in 2018, it is more difficult. Then it may not be the same legal relationship.

What does "the same legal relationship" mean?

The same legal relationship means that the claims come from the same legal relationship between the parties. It is more than the same people being involved. The claims must have a close connection.

A single contract is often the same legal relationship. If both claims come from the same purchase contract, the same tenancy agreement or the same service assignment, it is often covered. If the claims come from the same damage settlement or the same account between the parties, it may also be covered.

Several separate agreements are not always the same legal relationship. If you bought a car from someone in 2020 and later rented a cabin from the same person in 2025, these are normally two different legal relationships. A time-barred claim from the car purchase cannot simply be set off against the cabin rent.

This distinction can be difficult. That is why you should explain the connection clearly if you use set-off. Write why the claims are connected. Write which agreement they arise from. Write the amounts.

What does it mean that the claim must have arisen before limitation?

Letter b says that the claim against which set-off is made must have arisen before the time-barred claim became time-barred. This is technical, but important.

Imagine your claim became time-barred on 1 June 2026. If the other person's claim against you only arises in 2027, you usually cannot use your old time-barred claim for set-off under letter b. The new claim came too late. The law does not want old time-barred claims to be usable against completely new claims.

If, on the other hand, both claims existed before the limitation took effect, set-off may be more reasonable. In practice, the claims could then have been settled against each other while both were still alive. § 26 lets you keep that possibility in some cases.

This is one of the reasons why dates matter. When did your claim arise? When did it become time-barred? When did the claim you want to set off against arise? If you do not know this, you cannot assess § 26 correctly.

What happens if you get it wrong?

If you pay in full without considering set-off, you may lose a practical opportunity to reduce the claim. This is particularly important when the claims are connected, as in tenancies, tradesman services and purchases.

If, on the other hand, you use set-off without grounds, the other party can demand full payment and perhaps add interest (renter) and costs. Set-off should therefore be specific and justified.

If you only say "I also have a claim against you" without declaring set-off, it can become unclear. Write clearly that you are setting off, what amount you are setting off, and which claim you are setting it off against.

Make two columns. In one, write the other party's claim against you. In the other, write your claim against the other party. Write the amount, date and grounds for each claim.

Check whether set-off has been agreed. If not, consider whether the claims arise from the same legal relationship. Also check whether the other party's claim arose before your claim became time-barred.

If you want to use set-off, do it in writing. Write: "I declare set-off." Explain the amount and attach documentation.