Which party is described as the Acceptor in the instrument liability mnemonic A MAID?

Which party is described as the Acceptor in the instrument liability mnemonic A MAID?

• A. Acceptor
• B. Maker
• C. Drawer
• D. Indorser

Answer: (A)

The party described as the Acceptor is the one who signs the instrument to acknowledge an obligation to pay, taking on primary liability. In a bill of exchange, the drawer orders payment, the drawee is the person or bank named to pay, and when the drawee signs to accept the bill, that signer becomes the acceptor. The acceptor’s signature creates the primary obligation to pay the amount due when the instrument comes due. This is distinct from the maker, who signs a promissory note and is primarily liable on that note, and from the drawer or indorser, who have liability only in secondary fashion after presentment and dishonor. So the Acceptor is the drawee who signs to accept the payment obligation.

The party described as the Acceptor is the one who signs the instrument to acknowledge an obligation to pay, taking on primary liability. In a bill of exchange, the drawer orders payment, the drawee is the person or bank named to pay, and when the drawee signs to accept the bill, that signer becomes the acceptor. The acceptor’s signature creates the primary obligation to pay the amount due when the instrument comes due. This is distinct from the maker, who signs a promissory note and is primarily liable on that note, and from the drawer or indorser, who have liability only in secondary fashion after presentment and dishonor. So the Acceptor is the drawee who signs to accept the payment obligation.