acceptance -
Generally, the action on the part of the drawee of a time draft (bill of exchange) in becoming the acceptor. The drawee confirms acceptance of the draft, specifies a date of payment and is accountable for payment on the due date. Acceptance can also happen in the case of paper created and purchased by finance companies.
Banker's acceptance - Denotes acceptance by a bank of a draft drawn on a bank. Traditionally, this method of finance has been used widely for the payment of goods in commercial transactions, especially in international trade. The bankerfs draft is normally acknowledged as a money market instrument. Acceptance liability is the liability that the bank takes upon itself. See also letter of credit.
Trader's acceptance - Acknowledgement of responsibility for payment on the part of the buyer of goods for a time draft drawn by the seller. The validity of the draft depends upon the buyerfs credit.
another definition...
acceptance -- a written agreement, usually in the form of a draft, in which one party, the drawee, accepts the obligation to pay a specified amount of money to another party at a specified place and time. The drawee is also known as the acceptor, and writes the word "accepted" over his or her signature. A bank acceptance is a draft drawn on and accepted by a bank.
another definition...
Acceptance -- 1. A draft calling for payment at a future date which the drawee has agreed to pay by signing "Accepted" on the draft.
2. An unconditional assent to an offer; or an assent to an offer conditioned on only minor changes that do not affect any material terms of the offer;
3. An agreement to purchase goods on specified terms.
4. Receipt of a shipment by a consignee thus terminating the liability of the carrier for delivery.
historic definition...
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 the bill 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.
About the author
 |
Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
 |
Copyright © 2005 by Mark McCracken, All Rights Reserved.
TeachMeFinance.com is an informational website, and should not be used as a
substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any
investment or financial decision.
Please read our disclaimer.