ACCEPTOR ACCEPTANCE

(..8 e ..)

ACCEPTOR ACCEPTANCE ETC

(Ss. 7, 33, 34).

 

SYNOPSIS

  1. ACCEPTOR (S. 7):-
  2. WHO CAN BE ACCEPTORS (Ss. 33- 34):-

 

I.        ACCEPTOR (S. 7):-

The concepts of acceptance and acceptor are related to a bill of exchange. A Bill of Exchange, being an order upon the drawee to pay the money, is not binding on him unless he accepts it. However, acceptance is not necessary for the validity of the bill. It does not become invalid if it is not accepted but merely called to have dishonoured due to non-acceptance. Usually, drawee sings his acceptance on the face of a bill. According to S. 7, after the drawee of a bill has signed his assent upon the bill, or, if there are more parts thereof than one, upon one of such parts and delivered the same, or given notice of such signing to the holder or to some person on his behalf, he is called the ‘acceptor’.

In Parmahal v. Hargoal Ram[1]

Held– An oral acceptance of a bill does not make the person accenting it an acceptor of the bill within the meaning of S. 7.

                    The drawee becomes an acceptor when he has signed his assent upon the bill. In order to signify his acceptance, the drawee very often adds words as ‘accepted’ and thereafter affixes his signature on the bill. However, S. 7 does not require the addition of those words in order to bind him as an acceptor.

II.      WHO CAN BE ACCEPTOR[2] (Ss. 33 to 34):-

                    A bill can be accepted by the drawee or by all or some of several drawees or by a person mentioned in the instrument as a drawee in case of need or by a person who accepts it for the honour of the drawee. No other person can bind himself by acceptance (S. 33).

                    Where there are several drawees of a bill who are not partners, each can accept for himself and not for others unless so authorised.

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[1] 29 Punj Rec 1919

[2]   स्विकृती कोण देवू शकतो?     [कौन स्वीकृति दे सकता है?]

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