Article 77 of the Saudi Commercial Court Law
المادة 77 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article bars the holder of a bill of exchange from refusing partial payment even where acceptance covers the whole value, discharges the drawer and endorsers up to the amount paid, and requires notice of the balance.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا عرض على حامل السفتجة بعض من قيمتها فلا يجوز له رفضه، وإن كان القبول شاملا لجميع القيمة والبعض المدفوع تبرأ منه ذمة الساحب والمحيلين وعلى حامل السفتجة أن يعمل الإخطار على الباقي .
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 77 explained in plain English
This article regulates partial payment of a bill of exchange, and lays down three rules:
- The holder may not refuse partial payment: if part of its value is offered to them, they may not refuse it, even if the acceptance covers the whole value.
- Discharge to the extent paid: the part paid discharges the liability of the drawer and the endorsers.
- Notice of the balance: the holder of the bill must give notice of the balance.
The reason is that partial payment is in the interest of all those liable, as it reduces what the holder can claim against them. Were the holder to refuse it, the drawer and endorsers would remain liable for the full value without justification.
The third rule is important in practice: accepting partial payment does not mean waiving the rest; the holder must give notice of the unpaid amount.
It is followed by Article 78, which bars the commercial court from granting a period of grace of its own for paying the value of a bill of exchange.
If you are offered partial payment of a bill you hold, do not refuse it, give notice of the balance promptly, and consult a lawyer who specializes in commercial paper.
Practical example
A company in Jeddah holds an accepted bill of exchange for SAR 200,000, and the drawee offers it only SAR 120,000 on the due date. The company may not refuse this amount, the drawer and endorsers are discharged from it, and the company must give notice of the remaining SAR 80,000.
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 77 of the Saudi Commercial Court Law
Can partial payment of a bill of exchange be refused?
No. If part of its value is offered to the holder, they may not refuse it, even if the acceptance covers the whole value.
What is the effect of partial payment on the drawer and endorsers?
Their liability is discharged for the part paid.
What must the holder do about the remaining amount?
They must give notice of the balance.
More articles on Endorsement, Payment and Recourse on the Draft
- Article 51
The article makes the drawer of a bill of exchange and the endorsers who transferred it jointly liable for its acceptance and for payment on time, and jointly bound to pay its holder.
صاحب السفتجة والمحيلون المتناقلون لها مسئولون على وجه التضامن عن القبول والدفع في ميعاده وملزمون لحاملها بالوفاء على وجه التضامن
- Article 57
The article provides that the intervener is not bound to pay the bill's value on the due date except after notice of non-payment has been given within the set time.
لا يجب على المتوسط المذكور دفع قيمة السفتجة في ميعاد استحقاق الدفع إلا بعد عمل الإخطار بعدم الدفع في الميعاد المحدود .
- Article 60
The article provides that ownership of bills of exchange passes from one person to another by transferring them by endorsement on them.
تنتقل ملكية السفاتج من واحد لآخر بتحويلها شرحا عليها .
- Article 61
The article sets the particulars of a bill's transfer: the date, a statement that value has been received, the name and surname of the person to whose order it passes, and the endorser's signature or seal.
يؤرخ تحويل السفتجة ويذكر فيها أن قيمتها وصلت ويبين فيها اسم وشهرة من انتقلت تحت إذنه ويضع المحيل إمضاءه أو ختمه .
- Article 62
The article provides that a transfer of a bill of exchange that does not meet the conditions of Article 61 does not pass ownership but counts as an ordinary authorization to collect its value.
إذا لم يستوف تحويل السفتجة شرائطه المبينة في المادة السابقة فلا يوجب انتقال الملك بل يعد توكيلا اعتياديا في قبض قيمتها .
- Article 63
The article prohibits putting dates in transfers ahead of their true date, and treats that as forgery if it occurs.
تقديم التواريخ في التحاويل عن تاريخها الحقيقي ممنوع وإن حصل يعد ذلك تزويرا .
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.