Legal Definitions - effets

Effets is a legal term, derived from French, that broadly refers to personal property, goods, or movable possessions. In certain financial contexts, it can also specifically denote financial instruments such as bills of exchange, funds, or stocks.

• Example 1 (General Personal Property):

  When drafting a will, an individual might state, "I bequeath all my personal effets to my niece."

  Explanation: In this instance, "effets" refers to the individual's movable personal belongings, such as furniture, jewelry, clothing, books, and other household items, distinguishing them from real estate or fixed assets.

• Example 2 (Financial Instruments - Bills of Exchange):

  A business transaction between two international companies might involve the buyer issuing "effets" to the seller as a promise of future payment for a large shipment of goods.

  Explanation: Here, "effets" specifically refers to commercial papers like bills of exchange or promissory notes, which are written instruments used to facilitate payment in trade by obligating one party to pay a specified sum to another on a particular date.

• Example 3 (Financial Instruments - Stocks/Funds):

  During a divorce proceeding, a court might order the division of a couple's "effets mobiliers," which includes their joint investment portfolio.

  Explanation: In this financial context, "effets mobiliers" specifically denotes liquid financial assets such as stocks, bonds, mutual funds, or other marketable securities held by the couple.