A more thorough explanation:

Acceptance criteria are the agreed-upon standards that a custom-made product, such as computer software or hardware, or a commercial website must meet before the customer is legally obligated to accept the product and pay for it. These criteria are used to determine whether the product meets the customer's requirements and expectations.

For example, if a company hires a software development team to create a new app, they will provide acceptance criteria that outline the specific features and functionality that the app must have. The development team will then conduct acceptance testing to ensure that the app meets these criteria before delivering it to the customer.

If the app does not meet the acceptance criteria, the customer may have the right to terminate the contract and not pay for the product. This is why acceptance criteria are an important part of any sales contract or license agreement.