Tenant Set-Off Declaration Deadline for Rent Arrears Eviction

The court addressed whether a tenant, facing eviction due to rent arrears under Article 257d of the Code of Obligations (OR), must declare set-off against a counterclaim owed by the landlord before the deadline set for payment. The court reasoned that while set-off is generally permissible in tenancy law, to prevent the extraordinary termination of the lease following the expiry of the statutory payment period, the tenant must declare the set-off—just like actual payment—within that specified period, as an expiration of the payment deadline without payment or set-off immediately grants the landlord the right to terminate the tenancy.