If you could include more context I'm sure that someone could clarify this for you more accurately.
Student or Learner
Would you be kind enough to tell me whether I am on the right track by the interpretation of the term in bold in the following sentence?
This letter looks like an acceptance.
acceptance (n) = a formal indication by a debtor of willingness to pay a time draft or bill of exchange.
Draft (bill of exchange) payable to a third party on a specified or determinable future date, as opposed to a Sight Draft.
a Banker's Acceptance is an example of a time draft.
time draft = a written order to pay a certain sum in money that is payable at a particular future date.Time drafts, sometimes called time bills or time loans, are frequently used by merchants to finance the transportation of goods.
Thank you for your efforts.
Let us suppose that Smith & Co., Ltd., of London have sold goods to A.B. White & Co. of Sheffield and that the contract provides for payment by a three months’ bill. Let us further suppose that the amount to be paid to the Sellers at the expiration of the three months is £ 258.10.6.
Smiths & Co ., Lmt., will then draw the following bill upon A.B. White & Co.:
£ 258.10s. 6d Due 25 March 2009
London, 22 th December, 2008
Stamp Three months after date pay to our order the sum of two hundred and fifty-eight pounds ten shilling and sixpence sterling for value received.
To messrs. A.B. White & Co., For and on behalf of Smith & Co, Ltd. (Signatures)
The person who draws or makes out the bill is called the drawer, the person upon whom it is drawn is called the drawee. The drawee is the person who will have to pay. In its present form the document is called a draft and in this state it is sent by Smith & Co., Ltd to A.B. White & Co. to be signed, or as it is called, accepted. When A.B. White & Co. receive the draft, if they are willing to pay as directed in the draft, they write on the paper, and, generally across the face of it, the word “accepted” together with their name, and very likely, the name of their bank, where the amount will be paid:
The Sheffield City Bank, Ltd.
A.B. White & Co.
The draft has now become an acceptance . In its altered form the draft is returned in the drawer, Smith & Co., Ltd. I guess, that very letter is which looks like acceptance.
That was exactly what I needed. Much to my regret, that very question in my original post concerning the interpretation of the term “acceptance” in the sentence “This letter looks like acceptance” has not made clear.
Last edited by vil; 23-Dec-2008 at 08:40.