Acceptance of Bill

 Acceptance of B/E means the written consent of drawee on

it for the payment of certain amount according to
mentioned or decided date. For this purpose, the drawee
signs the bill to make it confirm or legal.
 ELEMENTS OF ACCEPTANCE

1. Signature:
For the acceptance of bill, the signature of drawee of payer is
necessary.

2. Only for Amount:

The drawee of bill does not accept any liability apart or except the
payment of certain amount. It means the drawee only promises to pay a
certain amount.
 TYPES OF ACCEPTANCE

 General Acceptance:
If the drawee of bill signs it without any change or alteration then it is called general
acceptance. The general acceptance is made as (1) Khurram Shahzad (2) Accepted
Khurram Shahzad.

 Special Acceptance:
If the drawee of bill imposes any condition (alters the amount or date etc. of bill)
before signing it then it is called special acceptance.
 Special Acceptance Types

 According to Place:
If the acceptor accepts bill after changing the place written on it by drawer.
 According to period:
When an acceptor gives his acceptance on the condition of change in period for the
payment of bit. A bill may be drawn payable two months after date, but accepted as
payable after four months after date.
 Partial Acceptance:
An acceptance is considered partial if the drawee undertakes to pay a part of amount written
on bill. A bill drawn for Rs. 3000 and accepted for Rs. 1000 only.
 Conditional Acceptance:
If a drawee gives his acceptance that he will make the payment of bill on the happening of
certain event. The acceptance is conditional when accepted as, accepted and payable when
goods consigned to me is sold.
 According to Parties:
If there are more than one drawees of bill and only one of them signs the bill then it is called
special acceptance.
ADVANTAGES OF BILLS OF EXCHANGE

1. Trade Development 11. Rediscounting

2. Settlement 12. Buyer’s facility
3. Proof of credit 13. Seller’s facility
4. Date of Payment 14. Less Need of Capital
5. Transfer of payment 15. Certainity of payment
6. Facility of discounting 16. Renewal of bill
7. Endorsement 17. Finanial Assistance
8. Income of bank 18. Debtor’s Facility
9. Progress of banking 19. Retirement of bill
10. Income of Government 20. Economic development
 Promissory Note

Promissory note is a credit instrument in which the debtor or the

buyer promises to pay a certain amount of money to the creditor or
seller on demand or at a fixed future time.
PARTIES OF PROMISSORY NOTE

 There are two main parties of the promissory note.

1. Maker (Drawer)
2. Payee (Drawee)
 Other Parties:
1. Endorser
2. Endorsee
 Features of Promissory Notes
1. In writing
2. Unconditional
3. Certain Amoumt
4. Signature
5. Drawer
6. Parties
7. Consent of parties
8. Payee to be certain
9. Specified person
10. Date of payment
11. Revenue Stamps
12. Stamp paper
 Types of promissory notes
Two Types

 Inland Promissory Note  Foreign Promissory Note

1. Individual Promissory Note 1. Individual Promissory Note
2. Joint Promissory Note 2. Joint Promissory Note