Sets Of Exchange, Or Of Bills - Definition - Law Dictionary Home Dictionary Definition sets-of-exchange-or-of-bills

Definition :

Sets of Exchange, or of Bills. It has been common, from a very early period, for the drawer to draw and deliver to the payee several parts, commonly called a set, of the same bill of exchange, any one part of which being paid, the others are void. This is done to obviate inconveniences from the mislaying or miscarriage of the bill, and to enable the holder to transmit the same by different conveyances to the drawee, so as to ensure the most speedy presentment for acceptance and payment. The general usage in England and America is for the drawer to deliver a set of three parts of a bill to the payee or holder, Byles on Bills.

By the Bills of Exchange Act, 1882, s. 71, 'where a bill is drawn in a set, each part of the set being numbered and containing a reference to the other part, the whole of the parts constitute one bill.