BILL IN A SET. Foreign bills are usually drawn in several parts, and, for safety, the parts may be transmitted by separate mails. Where a bill is drawn in that way it is said to be drawn in a set, and the various parts constitute one bill.
The rules regarding a bill drawn in a set are dealt with in Section 71 of the Bills of Exchange Act, 1882, which is as follows :— " (1) Where a bill is drawn in a set, each part of the set being numbered, and containing a reference to the other parts, the whole of the parts constitute one bill.
" (2) Where the holder of a set indorses two or more parts to different per sons, he is liable on every such part, and every indorser subsequent to him is liable on the part he has him self indorsed as if the said parts were separate bills.
" (3) Where two or more parts of a set are negotiated to different holders in due course, the holder whose title first accrues is as between such holders deemed the true owner of the bill ; but nothing in this sub section shall affect the rights of a person who in due course accepts or pays the part first presented to him.
" (4) The acceptancce may be written on any part, and it must be written on one part only. If the drawee accepts more than one part, and such accepted parts get into the hands of different holders in due course, he is liable on every such part as if it were a separate bill.
" (5) When the acceptor of a bill drawn in a set pays it without requiring the part bearing his acceptance to be delivered up to him, and that part at maturity is outstanding in the hands of a holder in due course, he is liable to the holder thereof.
" (6) Subject to the preceding rules, where any one part of a bill drawn in a set is discharged by payment or other wise, the whole bill is discharged." Where a bill is drawn in two parts, to save time one may be sent at once to the drawee for acceptance. The other part may be negotiated and contain a reference that the accepted part is in the possesson of a certain firm, as " First and in need with Messrs. Blank & Co., London." A bill of lading is usually issued in a set, and each one is signed by some person authorised to sign the same on behalf of the shipowner, but he is liable only for one of them. As soon as one has been presented and the goods delivered, the others are void. But if the drawee of a bill of exchange accepts more parts than one, he is not dis charged by paying one of them, but is liable on every such part. (See BILL OF LADING.) The following is a specimen of a bill drawn in a set of three, though sets of three are not so often seen as formerly : (First part.) Leeds, February 10, 1910.
Sixty days after sight pay this first of exchange (second and third of the same tenor and date unpaid) to the order of John Brown, the sum of one hundred pounds, value received, which place to account as advised.