Article 48 of the Saudi Commercial Court Law
المادة 48 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
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.
Official text (Arabic)
This article has not been amended since the law was issued.
من قبل السفتجة صار ملزوما بوفاء قيمتها ولو أفلس الساحب بغير علمه قبل قبوله فلا يجوز له الرجوع بعد القبول .
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 48 explained in plain English
This article lays down a clear rule on the effect of accepting a bill of exchange: whoever accepts a bill of exchange becomes bound to pay its value.
The article confronts a special case that an acceptor might invoke to escape the obligation, namely the drawer's bankruptcy. Even if the drawer went bankrupt without the acceptor's knowledge and before the acceptor accepted, the acceptor:
- remains bound to pay the value of the bill.
- may not withdraw after acceptance.
The reason is to protect the holder of the bill who relied on the acceptance. Acceptance is an independent obligation that the acceptor takes on by signing, and it does not lapse because of the drawer's circumstances of which the acceptor was unaware.
This article connects to Article 47, which gives the holder of the bill, when the drawer goes bankrupt after the drawee accepts, the right, to the exclusion of the drawer's other creditors, to receive the cover for payment held by the drawee. It is followed by Article 49, which requires the form of acceptance to be written in explicit wording with the acceptor's signature or seal and the date.
One should therefore think carefully before accepting any bill of exchange, because acceptance binds you. If you find yourself an acceptor of a bill in disputed circumstances, consult a lawyer specializing in commercial paper.
Practical example
A merchant in Riyadh accepted a bill of exchange drawn on him by a supplier, and later learned that the supplier had gone bankrupt before the acceptance without his knowledge. Under this article the merchant remains bound to pay the value of the bill, and may not withdraw his acceptance.
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 48 of the Saudi Commercial Court Law
Can acceptance of a bill of exchange be withdrawn?
No. Whoever accepts a bill of exchange is bound to pay its value and may not withdraw after acceptance.
What if the drawer went bankrupt before acceptance without my knowledge?
The acceptor remains bound to pay, even if the drawer went bankrupt without the acceptor's knowledge before acceptance.
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 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
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.