Acceptance - A bill of exchange (draft) payable at a future date which the drawee (the one upon
whom it is drawn) accepts prior to maturity by formally acknowledging that it is an obligation for
which he is liable. He writes (or stamps) across the face of the paper the word "Accepted" and
beneath this word he inscribes the date and then signs his name. If he desires to make it payable
at a particular bank or place he will write between the word "Accepted" and his name the
stipulation that it shall be payable at such a bank or at such a place. Acceptance of the paper
imparts to the paper itself the name acceptance.
When acceptance of a bill is refused proceedings may be begun against the maker and indorser
without waiting for thebill to mature—without waiting for the date of payment to arrive.
An acceptance is "general"' (or ''clean") when it assents without qualification to the order (draft) as
made by the drawer; it is "qualified" when the acceptance is for a less sum than is named in the bill
or when some modifying condition is imposed or attached; and it is "supra protest" or "for honor"
when accepted by a person other than the drawee (the one drawn upon) to save the honor or
credit of the drawer or an indorser after refusal of the drawee to accept. An acceptance is
"special" when the form of acceptance is special or particular or is unusual.
The acceptance of a draft makes the acceptor the principal debtor. After acceptance the drawer
stands practically in the position of an indorser of a promissory note, being only secondarily liable.
Acceptance admits everything necessary to make the acceptor liable. It admits the obligation to
the maker of the draft and the acceptor will not afterwards be allowed to deny this to the damage
of a holder of the paper.
The drawee (the one who is to pay) is allowed 24 hours after the presentation of the bill in which to
decide whether he will accept it. This allowance of time is for the purpose of permitting an
examination of documents accompanying a bill, but it likewise is granted in the case of a clean
bill—a bill which is not accompanied by documents.
For additional information see Commercial paper; also see Negotiable instrument.
whom it is drawn) accepts prior to maturity by formally acknowledging that it is an obligation for
which he is liable. He writes (or stamps) across the face of the paper the word "Accepted" and
beneath this word he inscribes the date and then signs his name. If he desires to make it payable
at a particular bank or place he will write between the word "Accepted" and his name the
stipulation that it shall be payable at such a bank or at such a place. Acceptance of the paper
imparts to the paper itself the name acceptance.
When acceptance of a bill is refused proceedings may be begun against the maker and indorser
without waiting for thebill to mature—without waiting for the date of payment to arrive.
An acceptance is "general"' (or ''clean") when it assents without qualification to the order (draft) as
made by the drawer; it is "qualified" when the acceptance is for a less sum than is named in the bill
or when some modifying condition is imposed or attached; and it is "supra protest" or "for honor"
when accepted by a person other than the drawee (the one drawn upon) to save the honor or
credit of the drawer or an indorser after refusal of the drawee to accept. An acceptance is
"special" when the form of acceptance is special or particular or is unusual.
The acceptance of a draft makes the acceptor the principal debtor. After acceptance the drawer
stands practically in the position of an indorser of a promissory note, being only secondarily liable.
Acceptance admits everything necessary to make the acceptor liable. It admits the obligation to
the maker of the draft and the acceptor will not afterwards be allowed to deny this to the damage
of a holder of the paper.
The drawee (the one who is to pay) is allowed 24 hours after the presentation of the bill in which to
decide whether he will accept it. This allowance of time is for the purpose of permitting an
examination of documents accompanying a bill, but it likewise is granted in the case of a clean
bill—a bill which is not accompanied by documents.
For additional information see Commercial paper; also see Negotiable instrument.
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