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Qualified Acceptance

bill, accepted, drawn and brown

ACCEPTANCE, QUALIFIED. An accept ance is either general (see ACCEPTANCE, GENERAL) or qualified. Section 19 of the Bills of Exchange Act. 1882, defines a qualified acceptance as follows : " (2) . . . A qualified acceptance in ex press terms varies the effect of the bill as drawn.

" In particular an acceptance is qualified which is " (a) conditional, that is to say, which makes payment by the acceptor dependent on the fulfilment of a condition therein stated : " (b) partial, that is to say, an acceptance to pay part only of the amount for which the bill is drawn: " (c) local, that is to say, an acceptance to pay only at a particular specified place : " An acceptance to pay at a particular place is a general accept ance, unless it expressly states that the bill is to be paid there only and not elsewhere : " (d) Qualified as to time : " (e) The acceptance of some one or more of the drawees, but not of all." The following are specimens of qualified acceptances : Conditional. " Accepted, payable on de livery of bills of lading. J. Brown." Partial. Bill drawn for 1100. " Accepted for /50 only. J. Brown." Local. " Accepted, payable at the X & N' Bank, Ltd., Leeds, and there only. J. Brown." In order to charge the acceptor and other parties, the bill must be presented for payment at the place named.

As to time. Bill drawn at three months' date. " Accepted, payable at six

months' date. J. Brown." Not accepted by all the drawees. Bill drawn on W. Brown, J. Jones, and W.

Robinson. " Accepted, payable at X & I' Bank, Ltd. W. Robinson." In this case W. Robinson is liable to pay the bill.

The duties of the holder, the drawer, or the indorser of a qualified acceptance are set forth in Section 44 as follows : " (1) The holder of a bill may refuse to take a qualified acceptance, and if he does not obtain an unqualified acceptance may treat the bill as dishonoured by non-acceptance.

" (2) Where a qualified acceptance is taken, and the drawer or an indorser has not expressly or impliedly authorised the holder to take a qualified acceptance, or does not subsequently assent thereto, such drawer or indorser is discharged from his liability on the bill.

" The provisions of this sub section do not apply to a partial acceptance, whereof due notice has been given. Where a foreign bill has been accepted as to part, it must be protested as to the balance.

" (3) When the drawer or indorser of a bill receives notice of a qualified acceptance, and does not within a reasonable time express his dissent to the holder he shall be deemed to have assented thereto."