Home >> Cyclopedia-of-law-vol-6 >> Or Supra Protest Acceptances to Writers On Negotiable Instruments >> The Purpose of Accept

The Purpose of Accept Ance


THE PURPOSE OF ACCEPT ANCE. The drawee of a bill is not bound as a party to the instrument until he has accepted it, or agreed previously to pay it, and cannot be sued by the holder of the bill, though he has funds in his hands to cover the bill, except where the bill con stitutes an equitable assignment of the fund drawn against. (Mandeville v. Welch, 5 Wheat., 277 ) So due presentment for acceptance by the holder is a condition precedent to the exercise of rights against the other parties to the bill arising when the bill is dishonored by non-acceptance. The purpose of acceptance then is to bind the drawee and make him an actual and bound party to the instrument, which he is not until he has accepted. (Swope v. Ross, 40 Pa. St., 186.)