Mark the incorrect proposition: 1. Set-off is a statutory defence to a plaintiff's action, whereas a counterclaim is a cross-action. 2. Set-off and counter-claim arises out of the same transaction. 3. Set-off should not be barred on the date of the suit while counter-claim should not be barred on the date of filing of written statement. 4. Claim for set-off cannot exceed plaintiff's claim, whereas counterclaim can exceed the plaintiffs claim. 5. Both set-off and counter-claim cannot exceed the pecuniary jurisdiction of the court.

Answer: Option B