Set-off: it takes effect as soon as its conditions are met, not on the day it is invoked

A carrier sues its client for payment of unpaid invoices.

The client claims set-off, asserting that they hold their own claims against the carrier, evidenced by unpaid invoices issued more than five years ago.

The court of appeal rejects the set-off, ruling that because the client's claim was time-barred on the date it was invoked, the request is inadmissible.

Appeal allowed.

The Court of Cassation reaffirms a fundamental principle: set-off produces its extinguishing effect on the date its conditions are met, not on the date it is invoked (Article 1347, paragraph 2 of the Civil Code).

In other words, if both claims were reciprocal, fungible, and due six years ago, the set-off took effect on that date—even if it is only being invoked now, after the limitation period has expired.

The statute of limitations does not run against a debt that has already been extinguished by set-off.