Article 42 of the Saudi Commercial Court Law
المادة 42 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
The article sets the details required in a bill of exchange (safta): date, amount, drawee's name, date and place of payment, reason for the value and its receipt, and drawer's signature, and the rule for multiple copies.
Official text (Arabic)
This article has not been amended since the law was issued.
سندات الحوالة أي السفاتج التي تسحب من محل على آخر يجب أن تؤرخ ويوضح فيها المبالغ المحولة واسم الشخص المحال عليه وتاريخ ومكان الدفع ويبين فيها أنها قيمة بضاعة أو مقابل نقود أو محسوبة لحساب ما ويذكر فيها أن القيمة وصلت وإذا حرر منها عدة نسخ يذكر في كل منها عددها لتقوم الواحدة منها مقام الجميع كما أن جميعها في حكم نسخة واحدة ويضع إمضاء الساحب أو ختمه .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 42 explained in plain English
This article sets the mandatory details in the bill of exchange (safta), which is the order-of-payment instrument drawn from one place on another (today often known as the "kambiyala"). It must contain:
- The date.
- The amounts transferred.
- The name of the person on whom it is drawn (the drawee).
- The date and place of payment.
- The reason for the value: that it is the value of goods, or in exchange for money, or charged to some account.
- A statement that the value was received.
- The drawer's signature or stamp.
The article also addresses multiple copies: if the bill is drawn in several copies, each copy states its number, so that any one of them stands in place of all, and all of them are in the position of a single copy. The aim is that the amount is not claimed more than once.
Article 43 then allows a bill to be drawn on one person with a condition that it be paid at the place of another person, and also allows drawing it at the order of a person on his account. If you draw or accept a bill of exchange, check that its details are complete, and consult a lawyer who specializes in commercial paper if in doubt.
Practical example
A merchant in Riyadh bought goods from a supplier in Jeddah, so the supplier drew a bill on the merchant for the amount, stating the date, the name of the merchant as drawee, the date and place of payment, that it was the value of goods and that the value was received, and signed it. This bill contains the details the article requires.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 42 of the Saudi Commercial Court Law
What details must a bill of exchange contain?
The date, the amount, the name of the drawee, the date and place of payment, a statement that it is the value of goods or in exchange for money or on some account, that the value was received, and the drawer's signature or stamp.
What is the rule when a bill is drawn in several copies?
Each copy states its number, so that any one of them stands in place of all, and all of them are in the position of a single copy.
Is the drawer's stamp enough instead of his signature?
The text mentions placing the drawer's signature or stamp.
More articles on The Draft and Bill of Exchange and Acceptance
- Article 43
The article allows a bill of exchange to be drawn on one person with a condition that it be paid at the place of another person, and also allows it to be drawn at the order of a person on his account.
يجوز أن تسحب السفاتج على شخص ويشترط فيها الدفع في محل شخص آخر كما يجوز سحبها بأمر شخص على ذمته
- Article 44
The article provides that bills of exchange drawn contrary to the preceding conditions are considered only ordinary instruments.
السفاتج المحررة على خلاف الشروط الآنفة الذكر لا تعتبر إلا كسندات عادية .
- Article 45
The article requires that, when the payment date falls due, the drawee owe the transferor or the person who ordered the drawing an amount not less than the value of the bill.
عند حلول أجل دفع قيمة السفاتج يجب أن يكون في ذمة المحال عليه للمحيل أو للآمر بالسحب مبلغ لا يقل عن قيمة السفتجة .
- Article 46
The article makes acceptance sufficient proof that the acceptor owes the funds covering payment, and requires the drawer to prove the existence of the cover if it is denied, failing which the drawer guarantees the bill's value to the holder.
الشرح على السفتجة بالقبول دليل كاف على أن القابل مدين للساحب أو الآمر بالسحب بما يقابل الوفاء وعلى الساحب وحده أن يثبت في حالة الإنكار أو الامتناع عن الدفع بعد
- Article 47
The article regulates the holder's right to the cover for payment when the drawer goes bankrupt after acceptance, and when the drawee goes bankrupt after accepting, depending on the nature of the cover.
إذا أفلس الساحب بعد قبول المحال عليه ولو قبل حلول أجل الدفع فلحامل السفتجة دون غيره من غرماء الساحب الحق في استلام مقابل الوفاء الذي عند المسحوب عليه وإذا أفلس
- Article 48
The article provides that whoever accepts a bill of exchange is bound to pay its value and may not withdraw after acceptance, even if the drawer went bankrupt without the acceptor's knowledge before acceptance.
من قبل السفتجة صار ملزوما بوفاء قيمتها ولو أفلس الساحب بغير علمه قبل قبوله فلا يجوز له الرجوع بعد القبول .
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.