In which of the following cases a Set Off can be claimed?

1
'A' owes the partnership firm of 'B' & 'C' Rs. 1000/-. 'B' dies leaving 'C' surviving.' A' sues' C' for a debt of Rs. 1500/- due in his separate character. 'C' wants to set off the debt of Rs. 1000/-.
2
'A' sues 'B' for Rs. 20,000/-. 'B' wants to set off the claim for damages for breach of contract for specific performance.
3
Both '1' & '2'
4
None of the above

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