Essentials of a valid acceptance of Negotiable Instruments

The essentials of a valid acceptance are as follows:

(a) Acceptance must be written: The drawee may use any appropriate word to convey his assent. It may be sufficient acceptance even if just a bare signature is put without additional words. But it should be remembered that an oral acceptance is not valid in law. .

(b) Acceptance must be signed: A mere signature would be sufficient for the purpose. Alternatively, the words ‘accepted’ may be written across the face of the will with a signature underneath; if it is not so signed, it would not be an acceptance.

(c) Acceptance must be on the bill: That the acceptance should be on the face of the bill is not necessary; an acceptance written on the back of a bill has been held to be sufficient in law. What is essential is that it must be written on the bill; else it creates no liability as acceptor on the part of the person who signs it. Now what will happen if acceptance is signed upon a copy of the bill and the copy is not one of the part of it or if acceptance is made on a paper attached to the bill; in either of the cases, acceptance would not be sufficient.

(d) Acceptance must be completed by delivery: It would not complete and the drawee would not be bound until the drawee has either actually delivered the accepted bill to the holder or tendered notice of such acceptance to the holder of the bill or some person on his behalf.