In legal terms, an acceptor refers to a party who accepts a negotiable instrument, such as a bill of exchange or a promissory note, thereby assuming the obligation to pay the specified amount of money to the holder of the instrument upon its maturity. Acceptance typically occurs when the drawee (the party ordered to pay) signifies their agreement to the terms of the instrument, usually by signing or endorsing it. By accepting the instrument, the acceptor becomes legally bound to honour its terms and fulfil the payment obligation outlined therein. Acceptance is a critical step in the negotiation and enforcement of negotiable instruments, as it confirms the acceptor’s commitment to fulfil their financial obligation and facilitates the transfer of the instrument’s rights to subsequent holders.
Acceptor: A device, material, or substance that accepts or receives something, such as an electron, a chemical bond, or a signal. In computer science, an acceptor is a component of a finite state machine that determines whether a given input string is accepted or rejected by the machine. In finance, an acceptor is a person or entity that accepts a bill of exchange or a promissory note and agrees to pay the amount specified on the document.
The party that signs accepted on a draft or obligation, agreeing to pay the stated sum at maturity.
- One who accepts.
- legal, commerce One who accepts a draft or a bill of exchange; a drawee after he has accepted.
The drawee of a bill of exchange after acceptance of the bill i.e. the acceptor has accepted liability by signing the face of the bill.
The acceptor is the third party who accepts responsibility for payment in a bill of exchange. The bill of exchange will generally have three parties: the drawor, the drawee and the acceptor.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
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