BLANK ACCEPTANCE Meaning and
Definition
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Blank acceptance refers to a type of acceptance of a negotiable instrument, such as a promissory note or a bill of exchange, where the name of the drawee is left blank or omitted. In other words, it is an acceptance that does not identify a particular person or party as the drawee. Instead, the blank acceptance is signed by the acceptor, indicating their willingness to honor and fulfill the payment obligations stated in the instrument.
The use of a blank acceptance offers flexibility in negotiable instruments as it allows subsequent holders to fill in the name of the drawee, making it payable to the desired person or entity. This blank space can be filled in with the name of a specific bank or individual who will then become responsible for payment upon maturity.
Blank acceptances are commonly utilized in commercial transactions, facilitating the transfer of negotiable instruments from one party to another without the need for specific information at the time of acceptance. However, it also poses certain risks, as an unscrupulous holder may potentially abuse the blank acceptance by filling in the name of an unauthorized drawee.
In summary, a blank acceptance is an acceptance that lacks the identification of a drawee in a negotiable instrument. It allows subsequent holders to fill in the blank space with a specific party's name, enabling the transfer of payment responsibility as desired.
Etymology of BLANK ACCEPTANCE
The term "blank acceptance" does not have a distinct etymology as it is essentially a combination of two separate words.
"Blank" derives from Middle English "blank" or "blanc", which originated from Old French "blanc" meaning "white" or "blank". The term was used in English to refer to a white spot or space that needed to be filled in, hence the idea of a blank document or check.
"Acceptance" comes from Latin "acceptantia", which is derived from the verb "accipere" meaning "to receive" or "to take". In English, "acceptance" refers to the action of approving, taking, or receiving something.
When these two words are combined, "blank acceptance" specifically refers to a type of financial instrument where the person or entity issuing it leaves certain important details (such as the amount or the date) blank, allowing someone else to complete them.
