Professional Documents
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Commercial Banking
Commercial Banking
Commercial Banking
1. Signature:
For the acceptance of bill, the signature of drawee of payer is
necessary.
General Acceptance:
If the drawee of bill signs it without any change or alteration then it is called general
acceptance. The general acceptance is made as (1) Khurram Shahzad (2) Accepted
Khurram Shahzad.
Special Acceptance:
If the drawee of bill imposes any condition (alters the amount or date etc. of bill)
before signing it then it is called special acceptance.
Special Acceptance Types
According to Place:
If the acceptor accepts bill after changing the place written on it by drawer.
According to period:
When an acceptor gives his acceptance on the condition of change in period for the
payment of bit. A bill may be drawn payable two months after date, but accepted as
payable after four months after date.
Partial Acceptance:
An acceptance is considered partial if the drawee undertakes to pay a part of amount written
on bill. A bill drawn for Rs. 3000 and accepted for Rs. 1000 only.
Conditional Acceptance:
If a drawee gives his acceptance that he will make the payment of bill on the happening of
certain event. The acceptance is conditional when accepted as, accepted and payable when
goods consigned to me is sold.
According to Parties:
If there are more than one drawees of bill and only one of them signs the bill then it is called
special acceptance.
ADVANTAGES OF BILLS OF EXCHANGE