Recoupment – in practice, this legal term find application in the area of Litigation procedures. There it refers the right of a defendant in a lawsuit to ask for deduction from the amount awarded to the claimant. The award is a sum due to the claimant in the transaction which was the subject of the lawsuit. For example in claims for rent on the base of illegal possession, the defendant may ask the awarded sum to be reduced by a number of the improvements he has done on the real estate. Usually, a reducing the award leads to reducing the awarded expenses too.
