Definition

Acceptance

The term Acceptance means an undertaking by the drawee (who then becomes the “acceptor”), of a Bill of Exchange to pay to the person presenting the bill (called the holder in due course) the face value of the bill on the due date.


Acceptance is the act of signing a bill of exchange to show that you agree to pay it.


 

Acceptance means contractual agreement instigated when the drawee of a time draft "accepts" the draft by
writing the word "accepted" thereon. The drawee assumes responsibility as the acceptor
and for payment at maturity.

Webster Dictionary Meaning

1. Acceptance
- The act of accepting; a receiving what is offered, with approbation, satisfaction, or acquiescence; esp., favorable reception; approval; as, the acceptance of a gift, office, doctrine, etc.
- State of being accepted; acceptableness.
- An assent and engagement by the person on whom a bill of exchange is drawn, to pay it when due according to the terms of the acceptance.
- The bill itself when accepted.
- An agreeing to terms or proposals by which a bargain is concluded and the parties are bound; the reception or taking of a thing bought as that for which it was bought, or as that agreed to be delivered, or the taking possession as owner.
- An agreeing to the action of another, by some act which binds the person in law.
- Meaning; acceptation.
Share it:  Cite

More from this Section