Article 98 of the Saudi Commercial Court Law
المادة 98 من النظام التجاري نظام المحكمة التجارية · الفصل الثامن: في معاملة الإخطار
The article provides that no paper drawn up by merchants or others in the form of a certificate takes the place of the notice instrument.
Official text (Arabic)
This article has not been amended since the law was issued.
لا تقوم أي ورقة محررة من قبل التجار أو غيرهم بصورة شهادة مقام سند الإخطار .
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 98 explained in plain English
This article confirms the official character of the notice. The rule: no paper drawn up by merchants or others in the form of a certificate takes the place of the notice instrument.
This means:
- A certificate from merchants, whatever their standing, does not replace the notice instrument.
- The rule also covers "others," so no certificate drawn up by any person takes the place of the notice.
The notice can therefore be made only by the route the Law has laid down. Article 97 before it set out what the notice instrument must contain: a literal copy of the bill, a copy of the acceptance wording if accepted, a copy of all the transfers and what must be written in them, and the official demand for payment of the value. These are elements not found in an ordinary certificate.
The reason is that important rights depend on the notice, so it is not right for a document lacking the guarantees of officialdom to take its place.
Article 99 follows, allowing the holder of a bill, after giving the notice, to draw a new bill called a re-draft. If you hold a bill that the drawee refused to accept or pay, do not be content with the testimony of merchant witnesses, and consult a lawyer who specializes in commercial paper to carry out the proper notice.
Practical example
A drawee in Riyadh refuses to pay a bill, so its holder brings three merchants who write a paper certifying the refusal. Under this article this paper does not take the place of the notice instrument.
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 98 of the Saudi Commercial Court Law
Does merchants' testimony replace a protest notice?
No. No paper drawn up by merchants or others in the form of a certificate takes the place of the notice instrument.
What must a notice instrument contain?
Under Article 97, a literal copy of the bill, the acceptance wording if any, all the transfers and the official demand for payment of the value.
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.