What is an acceptance in finance?

What is an acceptance in finance?

acceptance, short-term credit instrument consisting of a written order requiring a buyer to pay a specified sum at a given date to the seller, signed by the buyer as an indication of his intention to honour his obligation.

What is acceptances in balance sheet?

Acceptances, endorsements and other obligations basically represents the bills accepted or endorsed by the bank on behalf of its customers. A bank has to disclose all it’s acceptances, endorsements and other obligations under the head Contingent Liability on the face of the balance sheet.

What do you mean by acceptances?

Definition of acceptance 1 : the quality or state of being accepted or acceptable His theories have gained widespread acceptance. 2 : the act of accepting something or someone : the fact of being accepted : approval acceptance of responsibility.

What are trade acceptances?

Definition of trade acceptance : a time draft or bill of exchange for the amount of a specific purchase drawn by the seller on the buyer, bearing the buyer’s acceptance, and often noting the place of payment (such as a bank)

What is acceptance letter credit?

An acceptance credit is a type of letter of credit that is paid by a time draft authorizing payment on or after a specific date, if the terms of the letter of credit have been complied with. The bank “accepts” bills of exchange drawn on the bank by the debtor, discounts them and agrees to pay for them when they mature.

What does acceptance mean in business?

What is acceptance? In the law of contracts, acceptance refers to the promise or act of a buyer who indicates his willingness to be bound by the terms and conditions stipulated in a seller’s offer. Acceptance is a necessary element of a legally binding contract. If there is no acceptance, there is no deal.

What is the example of acceptance?

Acceptance means agreeing to receive something or the act of receiving it. An example of acceptance would be the taking of a bribe. The definition of acceptance means agreeing with or taking on a belief or beliefs. An example of acceptance would be agreeing with the theory of evolution.

What is the rule of acceptance?

Acceptance must be unconditional and absolute. There cannot be conditional acceptance, that would amount to a counteroffer which nullifies the original offer. However, the law does not allow silence to be a form of acceptance. So the offeror cannot say if no answer is received the offer will be deemed as accepted.

What are the types of acceptance?

There are three types of acceptance:

• Empress acceptance.
• Implied acceptance.
• Conditional acceptance.

What is difference between acceptance and negotiation?

The key difference between availability by negotiation and availability by acceptance is that in negotiation, the nominated bank is making an advance on another bank’s undertaking to honour (the issuing bank’s), whilst in acceptance, the nominated bank is providing its own independent undertaking to pay and thereby …

What is the acceptance rule?

Acceptance must be judged objectively, but can either be expressly stated or implied by the offeree’s conduct. To form a binding contract, acceptance should be relayed in a manner authorized, requested, or at least reasonably expected by the offeror.