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ACCEPTANCE

acceptance,n.1. An offeree’s assent, either by express act or by implication from conduct, to

the terms of an offer in a manner authorized or requested by the offeror, so that a binding contract

is  formed.  •  If  an  acceptance  modifies  the  terms  or  adds  new  ones,  it  generally  operates  as  a

counteroffer.  Cf.  OFFER.  [Cases:  Contracts    22(1).  C.J.S.  Contracts  §§  46–51,  53–54; Trading

Stamps and Coupons §§ 7–9.]

acceptance by silence.Acceptance of an offer not by explicit words but through the lack of an

offeree’s response in circumstances in which the relationship between the offeror and the offeree

justifies both the  offeror’s expectation  of a reply and the offeror’s reasonable conclusion that the

lack of one signals acceptance. • Ordinarily, silence does not give rise to an acceptance of an offer.

[Cases:  Contracts    22(1).  C.J.S.  Contracts  §§  46–51,  53–54;  Trading  Stamps  and  Coupons  §§

7–9.]

qualified acceptance.A conditional  or  partial acceptance that  varies the  original terms of an

offer  and  operates  as  a  counteroffer;  esp.,  in  negotiable  instruments  (bills  of  exchange),  an

acceptor’s variation of the terms of the instrument. [Cases: Bills and Notes    83. C.J.S. Bills and

Notes; Letters of Credit § 38.]

2.  A  buyer’s  assent  that  the  goods  are  to  be  taken  in  performance  of  a  contract  for  sale.  •

Under UCC § 2-606, a buyer’s acceptance consists in (1) signifying to the seller that the goods are

conforming  ones  or  that  the  buyer  will  take  them  despite  nonconformities,  (2)  not  making  an

effective rejection, or (3) taking any action inconsistent with the seller’s ownership. If the contract

is  for  the  sale  of  goods  that  are  not  identified  when  the  contract  is  entered  into,  there  is  no

acceptance until the buyer has had a reasonable time to examine the goods. But if the buyer deals

with them as owner, as by reselling them, a court may find constructive acceptance. [Cases: Sales

178(1). C.J.S. Sales §§ 189–191, 194–197.]“Acceptance  means communicated acceptance…. [It]

must be something more than a mere mental assent.” William R. Anson, Principles of the Law of

Contract 34 (Arthur L. Corbin ed., 3d Am.  ed. 1919). [But Corbin adds:] “This use  of the  word

‘communicated’ is open to some objection. To very many persons the word means that knowledge

has been received. Frequently a contract is made even though the offeror has no such knowledge.

In such case the acceptance is not ‘communicated’ and yet it consummates the contract.” Id. n.2.

“Acceptance  of  a  conveyance  or  of  a  document  containing  a  promise  is a  manifestation  of

assent  to  the  terms  thereof  made,  either  before  or  after  delivery,  in  accordance  with  any

requirements imposed by the grantor or promisor. If the acceptance occurs before delivery and is A

not  binding  as  an  option  contract,  it  is  revocable  until  the  moment  of  delivery.”  Restatement

(Second) of Contracts § 106 (1979).

3.  The  formal  receipt  of  and  agreement  to  pay  a  negotiable  instrument.  [Cases:  Bills  and

Notes    66–84. C.J.S. Bills and Notes; Letters of Credit §§ 4, 19, 21, 24, 37–40.] 4. A negotiable

instrument, esp. a bill of exchange, that has been accepted for payment.

acceptance au besoin (oh b<<schwa>>-zwan). [French “in case of need”] An acceptance by

one who has agreed to pay the draft in case the drawee fails to do so.

acceptance for honor.An acceptance or undertaking not by a party to the instrument, but by a

third  party,  for  the  purpose  of  protecting  the  honor  or  credit of  one  of  the  parties, by  which  the

third party agrees to pay the debt when it becomes due if the original drawee does not. • This type

of acceptance inures to the benefit of all successors to the party for whose benefit it is made. —

Also termed acceptance supra protest; acceptance for honor supra protest. [Cases: Bills and Notes

71. C.J.S. Bills and Notes; Letters of Credit § 37.]

“ ‘Acceptance for honour supra protest’ is an exception to the rule that only the drawee can

accept a bill. A bill which has been dishonoured by non-acceptance and is not overdue may, with

the  consent  of  the  holder,  be  accepted  in  this  way  for  the  honour  of  either  the  drawer  or  an

indorser (i.e., to prevent the bill being sent back upon the drawer or indorser as unpaid) by a friend

placing  his own  name  upon it as acceptor  for the  whole, or  part only,  of the amount of the bill;

after a protest has been drawn up  declaratory of its  dishonour by the drawee. Similarly, where a

bill  has  been  dishonoured  by  non-payment  and  protested  any  person  may  intervene  and  pay  it

supra protest for the honour of any person liable thereon; the effect being to discharge all parties

subsequent to the  party  for whose  honour it is paid.” 2  Stephen’s Commentaries on the  Laws of

England 202–03 (L. Crispin Warmington ed., 21st ed. 1950).

accommodation  acceptance.The acceptance  of  an  offer  to  buy  goods  for  current  or  prompt

shipment by shipping nonconforming goods after notifying the buyer that the shipment is intended

as an accommodation. • This type of “acceptance” is not truly an acceptance under contract law,

but  operates instead  as  a  counteroffer  if  the  buyer  is  duly  notified.  [Cases:  Sales    23(4).  C.J.S.

Sales §§ 38–40.]

banker’s  acceptance.A  bill  of  exchange  drawn  on  and  accepted  by  a  commercial  bank.  •

Banker’s acceptances are often issued to finance the sale of goods in international trade. — Abbr.

BA. —  Also termed bank acceptance. [Cases: Banks and Banking    189; Bills and Notes    151.

C.J.S. Banks and Banking §§ 452–458; Bills and Notes; Letters of Credit § 131.]

blank  acceptance.Acceptance  by  a  bill-of-exchange  drawee  before  the  bill  is  made,  as

indicated by the drawee’s signature on the instrument.

conditional acceptance.An agreement to pay a draft on the occurrence or nonoccurrence of a

particular event. [Cases: Bills and Notes    83. C.J.S. Bills and Notes; Letters of Credit § 38.]

express  acceptance.A  written  or  oral  expression  indicating  that  the  drawee  has  seen  the

instrument and does not dispute its sufficiency. • While a written acceptance is typically signified A

by the stamped or written word “ac-cepted” or “presented,” usu. on the instrument itself, an oral

acceptance  must  be  made  directly  to  a  drawer  or  holder  who  has  waived  the  right  to  a  written

implied acceptance.An acceptance implied by a drawee whose actions indicate an intention to

comply with the request of the drawer; conduct by the drawee from which the holder is justified in

concluding that the  drawee intends to accept the instrument. [Cases: Bills and Notes    70. C.J.S.

Bills and Notes; Letters of Credit § 21.]

special  acceptance.An  acceptance  that  departs  from  either  the  terms  of  a  bill  or  the  terms

added to but not otherwise expressed in a bill. • An example is an acceptance of a draft as payable

in  a  particular  place  even  though  the  draft  contains  no  such  limitation.  [Cases:  Bills  and  Notes

83. C.J.S. Bills and Notes; Letters of Credit § 38.]

trade  acceptance.A  bill  of  exchange  for  the  amount  of  a  specific  purchase,  drawn  on  and

accepted by the buyer for payment at a specified time. [Cases: Bills and Notes    1. C.J.S. Bills and

Notes; Letters of Credit §§ 2–3, 5–6, 8–9, 17–18, 22.]

5.  An  insurer’s  agreement  to  issue  a  policy  of  insurance.  [Cases:  Insurance    1731.  C.J.S.

Insurance  §§  273,  276–280.]  —  accept,vb.“And  in  some  instances,  insurance  companies  have

even specified in the application forms that acceptance of an applicant’s offer will not occur until

the  insurance  policy  is  literally  delivered  to  the  applicant  —  that  is,  the  insurer  chooses  to

structure the  arrangement  so  that  acceptance  is to  be  manifested  by  the  physical  delivery  of  the

insurance policy to the applicant.” Robert E. Keeton & Alan I. Widiss, Insurance Law: A Guide to

Fundamental Principles, Legal Doctrines, and Commercial Practices § 2.1, at 39–40 (1988).

6.  An  heir’s  agreement  to  take  an  inheritance.  See  TACIT  ACCEPTANCE.  7.  See

ADOPTION(5). [Blacks Law 8th]