ACCEPTANCE

What is Acceptance?

Drawee is buyer of the goods upon whom the bill of exchange is drawn. If the drawee is ready to make payment on due date, he has to write the word “accepted” in the bill and put his signatures on it. After writing the word ‘accepted’ and putting signature, the drawee of the bill is known as acceptor. This process is called acceptance. After acceptance, the bill becomes a valid legal document. The drawee is required to honour the bill on due date. There are two types of acceptance namely General acceptance and qualified acceptance.
The general acceptance requires signatures of the acceptor only without stating any conditions, thereto. However, mention of a bank or a specified place of payment or part payment thereof, makes the acceptance qualified. A qualified acceptance varies the express terms of the bill as originally drawn and thereby the drawer can refuse to consider the bill as accepted. Sometimes the bill of exchange may be accepted by another person on behalf of the drawee. For example a bill of exchange drawn by Sathar up on Roopesh may be accepted by Wilson.