We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Acceptor: Key Insights into Legal Definitions and Responsibilities
Definition & meaning
An acceptor is a person or entity that agrees to take responsibility for the payment or performance of a negotiable instrument, such as a bill of exchange. The acceptor is considered the principal debtor, meaning they are primarily liable for fulfilling the terms of the instrument. It is important to note that there can only be one acceptor for a bill of exchange, and their liability can typically only be released through payment, an express release, or a waiver, or by the statute of limitations.
Table of content
Legal use & context
The term "acceptor" is commonly used in commercial law, particularly in the context of negotiable instruments. This includes areas such as banking, finance, and contracts. Understanding the role of an acceptor is crucial for parties involved in transactions that utilize bills of exchange or similar instruments. Users can manage related legal documents through platforms like US Legal Forms, which provide templates drafted by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A business issues a bill of exchange to a supplier for goods delivered. The supplier accepts the bill, becoming the acceptor, and agrees to pay the specified amount on the due date.
Example 2: A company issues a promissory note to a lender. The lender accepts the note, thereby becoming the acceptor and taking on the responsibility to pay the lender the agreed-upon amount at maturity.
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Specific rules on the discharge of liability may apply.
New York
Strict enforcement of acceptance terms under the UCC.
Texas
Additional requirements for written acceptance may exist.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Drawer
The person or entity that creates and signs a bill of exchange.
Endorser
A person who signs their name on the back of a negotiable instrument, transferring ownership.
Payee
The person or entity to whom the payment is to be made.
Common misunderstandings
What to do if this term applies to you
If you are involved in a transaction that requires an acceptor, ensure that the terms of the negotiable instrument are clear and agreed upon by all parties. If you need assistance, consider using US Legal Forms to find templates that can help you create or manage these documents. For complex situations, consulting a legal professional is advisable.
Find a legal form that suits your needs
Browse our library of 85,000+ state-specific legal templates.