set-off against?

Question

Could you pleas tell me what does it mean by "set-off against " in following sentence:

The information provided, with respect to amounts owing in default to the Government of Canada, is
true and accurate. I recognize that amounts payable to me under any future contribution agreement may
be deducted from, or set-off against, any such amounts owing to the Government of Canada.

Answer 1

Example only:

set off against = if you earn $!00 and you earn $10 they will deduct $1 (10%) until the full amount is paid

deducted from = if you owe $100 and you earn $1,000 they will "deduct" perhaps $100 (10%)

The % deducted is determined as per state / country / law / agreement

Both pretty much mean the same thing only the Govt dotting their i's and crossing their t's but the example above shows the difference between the two ... hope this helps

Answer 2

be deducted from, remove from