Acceptance is one of the central institutions of bill-of-exchange circulation: it is through acceptance that the drawee assumes the obligation to pay the bill independently at maturity, and it is precisely the refusal to accept, or its defective formalization, that often becomes the subject of dispute. The rules connected with acceptance are strict — the form of the entry, the signature, the date and the immutability of the content each carry legal significance. Within this service we help you with the correct formalization of acceptance, the recording of a refusal to accept and the enforcement of claims against the acceptor.
In practice, disputes arise most often where the acceptance is defectively formalized, is partial or modifies the content of the bill. That is why every step connected with a bill should be taken with an exact knowledge of the requirements of the law.
Formalization of Acceptance
Acceptance is written on the bill. It is expressed by the word „accepted“ or another analogous word, which the drawee signs. The drawee's signature on the front of the bill is deemed to be an acceptance — that is, even a signature left without the word is sufficient for an acceptance to exist, provided it is on the face of the bill and is not the signature of another person.
The rule on dating also matters: where a bill is payable at a fixed period after presentation or must be presented for acceptance within a prescribed period, the date of acceptance is the day on which the entry was actually made, unless the holder of the bill requests that the date of presentation be recorded. If the date is not indicated, the holder is obliged, in order to preserve his rights against the indorser and the issuer of the bill, to certify this defect by a timely protest. Omitting the protest may in this case become the reason for the loss of rights.
The Unconditionality of Acceptance and Partial Acceptance
Acceptance is unconditional. The drawee may, however, accept a part of the amount of the bill: such partial acceptance is permitted by the law, and the holder then faces the question whether to accept it. This decision may have subsequent legal consequences and must therefore be taken deliberately.
Any other change introduced into the content of the bill by means of the acceptance is deemed to be a refusal to pay. In all cases the acceptor bears responsibility according to the content of his acceptance — what is written in the acceptance is exactly the obligation for which the acceptor answers.
The Effects of Acceptance and the Acceptor's Liability
By accepting, the drawee becomes obliged to pay the bill as soon as maturity arrives. This obligation is independent, and it is precisely this that distinguishes the acceptor from the other participants in the bill. In case of non-payment, an action may be brought directly against the acceptor on the basis of the accepted bill, and the amounts provided for by this law may also be claimed. The claim against the acceptor is the strongest claim deriving from the bill, because his obligation is imposed by the bill itself.