Repayment – in practice, this legal term finds application in the area of Litigation procedures, where refers the right of a defendant in a lawsuit to ask for deduction from the amount awarded to claimant a sum due the defendant from 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 the landlord to be reduced with the amount of the improvements, done by the tenant on the real estate. The reason for such request for reduce is because the price of the property has increased with the improvements done by the tenant, so it is not fair for the landlord to receive more than he has previously lost. Synonyms of “repayment” are “recoupment” and “rectification”.

In practice, lender and borrower may agree on repayment plan in a situation where the last experiences difficulties to follow the initial agreed schedule of paying the debt. So the parties either increase the term of repayment, or reduce the amount of the installments payable to the creditor (but increase the number of installments).