Article 87 of the Saudi Commercial Court Law
المادة 87 من النظام التجاري نظام المحكمة التجارية · الفصل السابع: في تحويل السفاتج المعبر عنه بالجيرو
The article provides that notice of non-acceptance does not replace notice of non-payment, and that a "recourse without expenses" condition dispenses with notice and time limits depending on who wrote it.
Official text (Arabic)
This article has not been amended since the law was issued.
حامل السفتجة وإن عمل إخطارا لعدم القبول أو لمدة المسحوب عليه أو إفلاسه لا يبقى من عمل إخطار آخر لعدم الدفع وإذا كتب صاحب السفتجة أن رجوعها يكون بدون مصاريف، أغنى ذلك عن عمل الإخطار وعن مراجعات المواعيد السالفة وعن الإجراءات المتعلقة بها، وإذا كتب ذلك من قبل أحد المحيلين فإنه يغني عما ذكر بالنسبة للرجوع على الكاتب ومن بعده دون المحيلين قبله .
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 87 explained in plain English
This article lays down two important rules on notice:
First: notice of non-payment is separate. The holder of a bill, even if they have given notice of non-acceptance, or a notice concerning the drawee's condition or bankruptcy as the text puts it, is not excused from giving another notice of non-payment. Each notice establishes a different fact.
Second: the "recourse without expenses" condition. Its effect differs according to who wrote it:
- If written by the owner of the bill (the drawer): it dispenses with giving notice, with observing the preceding time limits, and with the procedures relating to them.
- If written by one of the endorsers: it dispenses with the above as regards recourse against the writer and those after him, but not the endorsers before him.
The logic of the distinction is that the drawer stands at the start of the chain, so his waiver applies to everyone, whereas an endorser can waive only for himself and those who came after him.
This is connected to Article 86, which requires notice of non-payment to be given on the second day after the payment due date. Article 88 follows, setting out the holder's right to claim against the drawer and endorsers after the two notices.
If your bill carries a "without expenses" condition, check who wrote it, and consult a lawyer who specializes in commercial paper.
Practical example
The drawer wrote the phrase "recourse without expenses" on a bill of exchange. The drawee refuses to pay, and its holder in Jeddah may claim against the drawer and the endorsers without giving notice or observing the preceding time limits, under this article.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 87 of the Saudi Commercial Court Law
Does notice of non-acceptance replace notice of non-payment?
No. The holder of a bill, even if they have given notice of non-acceptance, is not excused from giving another notice of non-payment.
What is the effect of a "recourse without expenses" condition if the drawer wrote it?
It dispenses with giving notice, with observing the preceding time limits, and with the procedures relating to them.
And if one of the endorsers wrote it?
It dispenses with that as regards recourse against the writer and those after him, but not the endorsers before him.
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.