Acceptance and Negotiation
After carefully reading this chapter, you will be able:
- Understand clearly the meaning of acceptance of a negotiable instrument.
- State the various types of acceptance.
- Explain the meaning of negotiation.
- Distinguish between assignment and negotiation.
- Explain the various modes of negotiation.
- Enumerate the rules regarding endorsement and different kinds of endorsements.
MEANING OF ACCEPTANCE
Of all the negotiable instruments, the bill of exchange is to be presented before the drawee for his acceptance. However, every bill need not be presented for acceptance. A bill payable on demand or a bill payable on a fixed date need not be presented for acceptance before the drawee. The process of placing ...