Kinds of Acceptance: Everything You Need to Know
There are different kinds of acceptance when it comes to finalizing a contract.3 min read
There are different kinds of acceptance when it comes to finalizing a contract. A contract consists of a few basic elements, one of which is the acceptance of the terms and conditions between the parties of the agreement. It is important to understand the different types of acceptance to ensure your contract is valid.
Definition of Acceptance
A bill of exchanges happens when the word acceptance is stamped on a bill and includes a signature. The written word “acceptance” is not required. A signature on the bill is required for it to be valid.
Rules Regarding Acceptance
- The acceptance needs to be absolute and has to correspond with the terms of an offer.
- The acceptance has to be communicated by conduct or words.
- The acceptance is communicated when provided in a certain manner.
- Acceptance cannot be conditional.
- The mental acceptance or acceptance that is uncommunicated cannot produce the contract.
- There has to be a mode of acceptance.
- There has to be a time element regarding acceptance.
- Completion of acceptance is required.
In order to form an agreement, an offer has to be made by one individual to another. A clear-cut acceptance to the offer is a must.
The agreement becomes a contract once it can be enforced by the law. An offer or acceptance without a contract is not a legally binding contract.
Are There Different Kinds of Contract Acceptance?
An acceptance on a bill can be classified as a general acceptance and qualified acceptance. General acceptance is considered absolute and is considered general when it is unqualified and unconditional.
Acceptance that is given assent without being qualified for is general acceptance. The person accepting an order to pay a certain amount in full without any condition is a general acceptance. This is a common form of acceptance unless other payment arrangements are made.
An acceptance has to be general to be valid as a general rule. Acceptance is qualified when the person accepting includes a condition when accepting an instrument.
There are three types of acceptance:
- Empress acceptance
- Implied acceptance
- Conditional acceptance
All of these acceptance methods are valid, but it is best to sign a formal contract to make sure there is a binding element in the event of litigation. Ultimately, acceptance is expressing proving consent for the contract.
Types Of Acceptance: Conditional Acceptance
A conditional acceptance is often referred to as a qualified acceptance. This happens when a person who has given an offer tells the person who made the offer that he or she will agree to the offer if there are some changes made to the terms and conditions, or in the event of something happening. A conditional acceptance is useful when you are unsure of how your situation will turn out or if there are things that could alter your current standing.
This is also used as a counteroffer. A counteroffer has to be accepted by the original person who offers before the contract is established. It places expectations on the acceptance of the offer. Conditional acceptance is most commonly five types:
- Qualified to place
- Qualified to amount
- Qualified to time
- Acceptance by some only
- Acceptance for installment payments
Qualified to place is where the drawee pays a bill at a specific place only. Qualified to amount occurs if the drawee accepts the exchange and takes the payment for only part of what is owed. Qualified to time occurs when the drawee accepts the exchange and pays the bill at a time different than what is in the contract.
Acceptance by some only is when some drawees, but not all, accept the exchange. Acceptance for installment payments occurs when the drawee agrees to pay the bill in installments. This has to be very clear at the front of the agreement.
Condition of acceptance has to be very clearly communicated in the agreement and needs to be understood right away. If a drawee wants to make a qualification during acceptance, it has to be done so that the holder of the instrument will not fail to understand what was accepted and based on certain qualifications.
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