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  • Acceptance For Value Law and Legal Definition

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    Acceptance for value is a commercial right that is obtained through instruments such as tax bills and violation tickets. It is a qualified endorsement or modified signature on an instrument. By accepting an instrument for value, one becomes the holder in due course of the instrument and can enforce the instrument on the issuer.

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    Acceptance for Value Law and Legal Definition

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    Acceptance for value is a commercial right that is obtained through instruments such as tax bills and violation tickets. It is a qualified endorsement or modified signature on an instrument. By accepting an instrument for value, one becomes the holder in due course of the instrument and can enforce the instrument on the issuer.

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    91 views1 page

    Acceptance For Value Law and Legal Definition

    Uploaded by

    pauldawalll
    Acceptance for value is a commercial right that is obtained through instruments such as tax bills and violation tickets. It is a qualified endorsement or modified signature on an instrument. By accepting an instrument for value, one becomes the holder in due course of the instrument and can enforce the instrument on the issuer.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
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    Acceptance for Value Law and Legal Definition

    Acceptance for value is a commercial right that is obtained through instruments such as tax bills and
    violation tickets. It is a qualified endorsement or modified signature on an instrument. By accepting an
    instrument for value, one becomes the holder in due course of the instrument and can enforce the
    instrument on the issuer.

    As per U.C.C. § 3-303, an instrument is issued or transferred for value if:


    1) the instrument is issued or transferred for a promise of performance, to the extent the promise has
    been performed;
    2) the transferee acquires a security interest or other lien in the instrument other than a lien obtained by
    judicial proceeding;
    3) the instrument is issued or transferred as payment of, or as security for, an antecedent claim against
    any person, whether or not the claim is due;
    4) the instrument is issued or transferred in exchange for a negotiable instrument; or
    5) the instrument is issued or transferred in exchange for the incurring of an irrevocable obligation to a
    third party by the person taking the instrument.
    Acceptance and Acceptance for Value is not same. Accepting an instrument without a qualified
    endorsement waives all defects there may be in the instrument, including the value, or lack of value, that
    comes with it. Accepting an instrument for value and returning it is notice to the issuer that the endorser
    is not providing new value, but is converting the issuer’s obligation to pay the instrument into the value,
    thereby making the instrument negotiable.

    Acceptance by Silence Law and Legal Definition


    Acceptance by silence is a type of acceptance of a contract. Generally a
    contract cannot be accepted by silence. However, a contract will be
    considered as accepted even in case of silence in the following cases:
    1. in case of past dealings of the parties;
    2. in case if the offeror has waived communication by indicating that acceptance may be made by silence
    or inaction;
    3. if one party requests to change the terms of the contract; and
    4. offer to renew an insurance policy is sent to the insured.

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