Legal Definitions - Set

The term "Set" has distinct meanings in legal and financial contexts:

• As a Verb (to schedule):

  When used as a verb in a legal context, "to set" means to officially schedule or arrange a specific time and date for a legal proceeding, event, or action.

  • Example 1: After reviewing the initial filings, the judge decided to set a preliminary hearing for the following month.

    Explanation: This means the judge has officially scheduled a specific date and time for the parties to appear in court for the preliminary hearing.

  • Example 2: The opposing attorneys managed to set a mediation session for next Tuesday to try and resolve the dispute out of court.

    Explanation: Here, "set" indicates that the attorneys have formally arranged and scheduled the time and place for the mediation session.

  • Example 3: The court clerk called to inform the defendant that their arraignment had been set for 9:00 AM on Friday.

    Explanation: This illustrates that the court has officially scheduled the defendant's appearance to hear the charges against them at a specific time and date.

• As a Noun (in the context of Bills of Exchange):

  In international finance, particularly concerning *bills of exchange* (a written order to pay a sum of money), a "set" refers to multiple identical copies of the same bill. These copies are issued to ensure that at least one reaches its destination and can be presented for payment, especially when sending them across long distances or through potentially unreliable channels. Although there are multiple physical parts, they collectively represent a single financial instrument, and payment of one part invalidates the others.

  • Example 1: An exporter shipping goods from Germany to Brazil might draw a bill of exchange in a set of three.

    Explanation: The exporter creates three identical copies of the bill. They might send one copy via express courier, another via standard mail, and retain the third. The first copy to arrive and be presented for payment will be honored, and the other two copies then become void, ensuring the payment is made only once but increasing the likelihood of the bill reaching its destination.

  • Example 2: To mitigate the risk of loss during transit across the ocean, a merchant requested that the *bill of exchange* for their valuable cargo be issued in a set.

    Explanation: By having multiple parts (copies), the merchant ensures that if one copy is lost or damaged, another identical copy can still be used to demand payment, thereby protecting their financial interest in the transaction.

  • Example 3: A bank in Tokyo received one part of a bill of exchange drawn in a set from a presenting party and, after verifying its authenticity, processed the payment, understanding that any other parts of that same set would now be invalid for payment.

    Explanation: The bank recognizes that while it holds only one physical document, it is part of a larger "set" representing a single financial obligation. Once one part is honored, the others lose their validity for payment.