Article 80 of the Saudi Commercial Court Law
المادة 80 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article provides that whoever intervenes to pay the value of a bill of exchange has all the holder's legal rights and duties transferred to them.
Official text (Arabic)
This article has not been amended since the law was issued.
كل من توسط في دفع قيمة سفتجة تنتقل إليه جميع حقوق وواجبات حاملها القانونية .
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 80 explained in plain English
This article sets out the effect of payment by intervention on the intervening person: whoever intervenes to pay the value of a bill of exchange has all the holder's legal rights and duties transferred to them.
This means the intervening person takes the holder's place:
- The rights pass to them: they have the legal rights the holder had in relation to the bill.
- The duties pass to them: they are bound by the legal duties the holder had.
The reason is that the intervening person paid money that was not originally a debt of theirs, so it is not right that they lose it. The transfer of the holder's rights to them allows them to recover what they paid.
Note that the text combines rights and duties, so the intervening person receives the benefits together with the burdens.
Article 79 before it set out the conditions of this payment: that it be on behalf of the drawer or one of the endorsers, after the necessary notice is given, with the intervention and its manner recorded in the notice instrument or at its foot. Article 81 follows, setting out the effect of payment by intervention on the endorsers' liability: if it is on behalf of the drawer, all the endorsers are discharged, and if on behalf of one of the endorsers, those after him are discharged.
If you paid a bill by intervention and want to recover what you paid, consult a lawyer who specializes in commercial paper.
Practical example
A merchant in Jeddah pays by intervention the value of a bill of exchange on behalf of one of its endorsers. Under this article, all the legal rights and duties of the holder of the bill pass to him, and he becomes in the holder's position.
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 80 of the Saudi Commercial Court Law
What rights does someone who pays a bill of exchange by intervention have?
All the legal rights and duties of its holder pass to them.
Does the intervening person take on the holder's duties too?
Yes. The text transfers both the legal rights and duties to them.
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.