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[QUOTE="joe234321, post: 390810, member: 10331"]
[b]implied odds[/b]

I won't give you a mathematical explanation of implied odds as it may be confusing and I might type it wrong.  Implied odds is the number of chips you could make in the hand if you hit it divided by the amount of chips you have to bet.  Then you multiply that number by the chance that you will hit the set.  If this number is greater than 1 then you are getting good odds.

So,
 you and your opponent had about 10,000 chips.
 he bets 1200.
 You now have to put  1200 in the pot.  If your set hits, you can only get another 8800 out of your opponent.
Therefore if we do the math

How much you could make/how much you have to call * chance of hitting set = odds
10,000/1,200 * 1/8 = 1.0416

The number is very slighty above 1 but not enough.  You have to calculate in the odds that your opponent may fold and not pay your set off.  Also, your opponent may flop a higher set(unlikely but still).  Once you adjust this number for those factors it is clear to fold.

One more thing though.  If you were in later position and you had one or more callers, calling the bet would be a good move.
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