Article 84 of the Saudi Commercial Court Law
المادة 84 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article provides that the provisions of the preceding article do not affect contrary conditions agreed between the taker of the bill, its drawer and the endorsers, which are given effect and carried out.
Official text (Arabic)
This article has not been amended since the law was issued.
لا تؤثر أحكام هذه المادة السالفة على الشروط التي تقع بخلافها بين أخذ السفتجة وساحبها والمحيلين، بل تعتبر الشروط وينفذ مقتضاها .
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 84 explained in plain English
This article gives priority to the parties' agreement over the provisions of Article 83 before it. Article 83 set time limits for the holder of a bill to demand its acceptance or payment, six months or a full year depending on the country of drawing, with the holder's right against the endorsers lost if the demand is delayed, and the limits doubled in maritime war.
The rule in this article is:
- The provisions of the preceding article do not affect conditions that run contrary to them,
- if these conditions are between the taker of the bill, its drawer and the endorsers,
- rather, the conditions are given effect and carried out.
This means the time limits in Article 83 are not absolutely binding: the parties mentioned may agree on different limits or provisions, and what they agree is then applied.
It is followed by Article 85, which requires the holder of a bill to demand payment of its value on the day the due date falls.
Because an agreement here changes limits whose lapse results in loss of the right, it is important that it be clear and recorded. If you are going to agree special conditions on a bill, consult a lawyer who specializes in commercial paper to draft them.
Practical example
A merchant in Riyadh agrees with the drawer of a bill drawn from India that the period for presenting it for acceptance will be three months instead of six. Under this article, this condition is given effect and carried out, even though Article 83 sets six months.
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 84 of the Saudi Commercial Court Law
Can different time limits for presenting a bill be agreed?
Yes. The provisions of Article 83 do not affect contrary conditions between the taker of the bill, its drawer and the endorsers; the conditions are given effect and carried out.
Between whom can this agreement be made?
Between the taker of the bill, its drawer and the endorsers, as the text provides.
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.