Article 1 of the Saudi Commercial Papers Law
المادة 1 من نظام الأوراق التجارية · الفصل الأول: إنشاء الكمبيالة
The article sets out the eight particulars a bill of exchange must contain, including the word "bill of exchange", the amount, the name of the drawee, the due date and the drawer's signature.
Official text (Arabic)
This article has not been amended since the law was issued.
تشتمل الكمبيالة على البيانات الآتية:
أ - كلمة (كمبيالة) مكتوبة في متن الصك وباللغة التي كتب بها.
ب - أمر غير معلق على شرط بوفاء مبلغ معين من النقود.
ج - اسم من يلزمه الوفاء (المسحوب عليه).
د - ميعاد الاستحقاق.
هـ - مكان الوفاء.
و - اسم من يجب الوفاء له أو لأمره.
ز - تاريخ ومكان إنشاء الكمبيالة .
ح - توقيع من أنشأ الكمبيالة (الساحب).
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 1 explained in plain English
A bill of exchange is a commercial paper in which a person called the drawer orders another person called the drawee to pay a sum of money to a third person or to his order. This article sets out the list of particulars that must be written in the bill of exchange:
- The word "bill of exchange" written in the body of the instrument itself, in the language in which the instrument is written.
- An order to pay a specified sum of money, provided the order is not conditional.
- The name of the person who must pay, who is the drawee.
- The due date, that is, the date of payment.
- The place of payment.
- The name of the person to whom or to whose order payment must be made, who is the beneficiary.
- The date and place of issue of the bill of exchange.
- The signature of the person who issued the bill, who is the drawer.
In practice, this means that anyone who draws or accepts a bill of exchange in business dealings should make sure all these particulars are present, because an instrument lacking them is not a bill of exchange except in the cases set out in Article 2, namely the absence of the due date, the place of payment, the drawee's domicile or the place of issue, for each of which that article provides a substitute rule.
Note that the amount must be specified and in money, and that the order to pay may not be tied to a condition. If you hold a bill of exchange that you doubt meets these particulars, it is best to consult a lawyer specializing in commercial matters and commercial papers.
Practical example
Ahmed, a shop owner in Jeddah, bought goods from a supply company in Riyadh, and they agreed that the price would be paid after three months. The company drew a bill of exchange stating the word "bill of exchange" in its body, ordering Ahmed (the drawee) to pay SAR 50,000 to the order of the company on a specified date in Jeddah, stating the date and place of issue and bearing the signature of the company's representative. The bill therefore contains the particulars that Article 1 requires.
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 1 of the Saudi Commercial Papers Law
What are the mandatory particulars of a bill of exchange?
Eight particulars: the word "bill of exchange" in the body, an unconditional order to pay a specified sum of money, the name of the drawee, the due date, the place of payment, the name of the beneficiary, the date and place of issue, and the drawer's signature.
May the order to pay in a bill of exchange be conditional?
No. The article requires that the order to pay the amount not be subject to a condition.
What if a particular is missing from a bill of exchange?
Under Article 2, the instrument is not considered a bill of exchange except in specified cases, namely lacking the due date, the place of payment, the drawee's domicile or the place of issue, each of which has a substitute rule.
More articles on Bill of Exchange
- Article 2
An instrument lacking the particulars of Article 1 is not a bill of exchange, except where the due date, place of payment, drawee's domicile or place of issue is missing, each of which has a substitute rule.
لا يعتبر الصك الخالي من البيانات المذكورة في المادة السابقة كمبيالة إلا في الأحوال الآتية: أ - إذا خلت الكمبيالة من بيان ميعاد الاستحقاق، اعتبرت مستحقة الوفاء ل
- Article 3
The article permits three ways of drawing a bill of exchange: to the drawer's own order, on the drawer himself, or for the account of another person.
يجوز سحب الكمبيالة لأمر الساحب نفسه، ويجوز سحبها على ساحبها، ويجوز سحبها لحساب شخص آخر.
- Article 4
The article permits stipulating that a bill of exchange be paid at the domicile of a person other than the drawee, whether in the drawee's town or in another.
يجوز اشتراط وفاء الكمبيالة في موطن شخص آخر غير المسحوب عليه سواء كان هذا الموطن في الجهة التي فيها موطن المسحوب عليه أو في جهة أخرى.
- Article 5
If the amount of a bill written in words differs from the amount in figures, the words prevail; if the amount is written several times and differs, the smaller amount prevails.
إذا كتب مبلغ الكمبيالة بالحروف وبالأرقام معا فتكون العبرة عند الاختلاف بالمكتوب بالحروف، وإذا كتب المبلغ عدة مرات بالحروف أو بالأرقام فتكون العبرة عند الاختلاف
- Article 6
Article 6 provides that any stipulation of interest on the amount of a bill of exchange is treated as if it had not been written.
اشتراط فائدة الكمبيالة يعتبر كأن لم يكن.
- Article 7
Article 7 determines the capacity of a person bound by a bill of exchange under the law of their domicile, requires a Saudi to be 18, and upholds the obligation of a person lacking capacity who signs in a country that treats them as fully capable.
تتحدد أهلية الملتزم بالكمبيالة وفقًا لنظام موطنه، ومع ذلك لا يعتبر السعودي أهلا للالتزام بالكمبيالة إلا إذا بلغ من العمر ثماني عشرة سنة. وإذا كان الشخص ناقص الأ
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.