Article 44 of the Saudi Commercial Court Law
المادة 44 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
The article provides that bills of exchange drawn contrary to the preceding conditions are considered only ordinary instruments.
Official text (Arabic)
This article has not been amended since the law was issued.
السفاتج المحررة على خلاف الشروط الآنفة الذكر لا تعتبر إلا كسندات عادية .
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 44 explained in plain English
This article sets the consequence of violating the conditions of the bill of exchange. Bills drawn contrary to "the conditions mentioned above", the conditions that came before this article in the law, including the permitted forms of drawing in Article 43, are considered only ordinary instruments.
In practice this means:
- The instrument is not invalidated entirely; it remains an ordinary instrument that can prove the obligation in it.
- But it loses the character of a bill of exchange, so the provisions specific to bills do not apply to it, including what Article 45 requires, that there be consideration for payment in the drawee's account when the payment date falls due.
The article does not distinguish between the details by importance; the text covers every bill drawn contrary to those conditions.
It is therefore important when drawing or accepting a bill to make sure that all the details and conditions the law requires for a bill are met. If you have an instrument disputed as to whether it is a bill or an ordinary instrument, consult a lawyer who specializes in commercial paper.
Practical example
A merchant in Jeddah wrote a paper asking a customer to pay an amount, but did not state in it the date or place of payment. Under this article this paper is not considered a bill of exchange, but only an ordinary instrument.
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 44 of the Saudi Commercial Court Law
What is the rule on a bill that lacks the required details?
Bills drawn contrary to the stated conditions are considered only ordinary instruments.
Is the paper invalidated completely?
No. The text makes it an ordinary instrument, so it loses the character of a bill without ceasing to exist.
More articles on The Draft and Bill of Exchange and Acceptance
- Article 42
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.
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
- 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 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.