Contradebt

/ˌkɒntrəˈdɛt/ noun

Definition

A mutual debt or counter-debt between two parties, especially in law or commerce where both sides owe each other money.

Etymology

Compound of 'contra-' (against, opposite) and 'debt' (something owed), with roots in Latin 'debitum'. This is a specialized legal and commercial term.

Kelly Says

In complex business negotiations, parties often use 'contradict' to offset what they owe each other—if you owe me $1,000 and I owe you $700, we can cancel out $700 of the debt.

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