Peremptory Challenge
1) also called a “setoff,” the deduction by a debtor from a claim or demand of a debt or obligation. such an offset is based upon a counterclaim against the party making the original claim. example: harry hardhead makes a claim or files a lawsuit asking for $20,000 from danny debtor as the final payment in purchase of a restaurant; as part of his defense debtor claims an offset of $10,000 for alleged funds owed by hardhead for repairs debtor made on property owned by hardhead, thus reducing the claim of hardhead to $10,000. 2) to counterclaim an alleged debt owed by a claimant to reduce the demand of that claimant.
