When a " time draft " is received for collection, although not due, it is presented to the person against whom it is drawn for " acceptance." This is done by his writing across its face the word " Accepted," followed by his signature, and it is then said to have been " honored." It has now become an evidence of indebtedness against him; very much the same thing as a promissory note. The person drawing the draft has, in like manner, assumed the position of an indorser, so that if it is negotiated in the meantime, or the " drawer " has been given use of the money by his bank which has assumed the collecting of the draft, he must make it good if the "acceptor" fails to pay it. (See also Addenda.)
It is customary to date a draft when it is " accepted," and to name a place of payment; otherwise it is payable at the "acceptor's " place of business.
" Formerly in England the drawee of a bill could accept it orally, and such is still the rule in some of our States. But by the usage of merchants," as well as by modern statutes in England and; in many of our States, an acceptance must be in writing on the bill. This Is a 'proper requirement, for it enables any one who receives the bill to tell at once whether it has been accepted." ¹
A " qualified acceptance " should not be allowed by the party presenting a draft to be accepted. If the person against whom the draft is drawn, in addition to writing the word ' accepted," adds thereto some qualification, such as making it conditional upon the receipt of merchandise against the shipment for which it was drawn, a " qualified acceptance " results. The reason for not permitting this is that the " drawer " or indorser upon a paper is entitled to his rights as set forth in its original form, and any change as above, except with their knowledge and approval, relieves them from my liability upon the paper.
(See also " Time Draft.")