Article 49 of the Saudi Commercial Court Law
المادة 49 من النظام التجاري نظام المحكمة التجارية · الفصل السادس: في السفاتج ، سندات الحوالة المعبر عنها بالبوليسة والكمبيالة المتداولة بين التجار
The article requires the form of acceptance of a bill of exchange to be written in explicit wording with the acceptor's signature or seal and the date.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن تكتب صيغة القبول بعبارة صريحة ويوضع عليها إمضاء القابل أو ختمه مع التاريخ .
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 49 explained in plain English
This article specifies the form required for accepting a bill of exchange. Oral agreement or an implied indication is not enough for acceptance; it must meet three elements:
- The form of acceptance in explicit wording: that is, clear wording that indicates acceptance without ambiguity.
- The acceptor's signature or seal.
- The date.
The importance of these conditions appears from the effects of acceptance, since Article 48 provides that whoever accepts a bill of exchange is bound to pay its value and may not withdraw after acceptance. As acceptance gives rise to an obligation of this strength, the Law requires it to be explicit, signed and dated.
The date is useful in knowing when the obligation arose. The signature or seal is useful in attributing the acceptance to its maker.
It is followed by Article 50, which prohibits making acceptance conditional and permits acceptance to be limited to an amount less than the value of the bill.
If you are asked to accept a bill of exchange, know that writing the wording of acceptance, signing it and dating it binds you. If you have an acceptance whose validity is disputed, consult a lawyer specializing in commercial paper.
Practical example
A bill of exchange drawn on a company in Jeddah was presented to its manager, who wrote on it the word "accepted", signed it, stamped it and dated it. This acceptance meets what the article requires: explicit wording, a signature or seal, and a date.
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 49 of the Saudi Commercial Court Law
How is acceptance of a bill of exchange written?
In explicit wording, with the acceptor's signature or seal, and the date.
Is a seal enough in place of a signature in acceptance?
The text mentions the acceptor's signature or seal, so either one is enough, together with the explicit wording and the date.
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.