Article 25 of the Saudi Commercial Papers Law
المادة 25 من نظام الأوراق التجارية · الفصل الثالث: قبول الكمبيالة
Article 25 requires acceptance of a bill of exchange to be unconditional while allowing it to be limited to part of the amount, treats a modification of any other term as a refusal of acceptance, and keeps the acceptor bound by what the acceptance states.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب أن يكون القبول غير معلق على شرط، ومع ذلك يجوز للمسحوب عليه أن يقصره على جزء من مبلغ الكمبيالة.
وإذا تضمنت صيغة القبول تعديلا لأي بيان آخر من بيانات الكمبيالة اعتبر ذلك رفضا للقبول، ومع ذلك يظل القابل ملزما بما تضمنته صيغة القبول.
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 25 explained in plain English
This article sets the limits of what a drawee may do when accepting a bill of exchange:
- Acceptance may not be made conditional: acceptance must be unconditional.
- Partial acceptance is permitted: the drawee may limit acceptance to part of the amount of the bill.
- Modifying other terms is a refusal: if the wording of the acceptance modifies any other term of the bill, such as changing the due date or the place of payment, this is treated as a refusal of acceptance.
- Remaining bound by what was accepted: nevertheless, the acceptor remains bound by what the wording of the acceptance states.
The last rule means that a drawee who accepts a bill with a modification does not escape his or her obligation but is bound within what he or she wrote, while for the purposes of the bill the matter is treated as a refusal of acceptance.
This article follows Article 24, which explains the wording of acceptance and its signature, and is followed by Article 26, which treats striking out acceptance before returning the bill as a refusal of it.
Anyone facing a partial or modified acceptance who wants to know the steps available can consult a lawyer specializing in commercial cases and commercial papers.
Practical example
A bill of exchange for SAR 40,000, payable at the end of the month, was presented to a merchant in Riyadh, and he wrote "accepted for SAR 25,000" and signed. This is a permitted partial acceptance under Article 25. But if he had written "accepted on condition that payment is made after 3 months," that would be treated as a refusal of acceptance, while he would remain bound by what the wording of his acceptance states.
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 25 of the Saudi Commercial Papers Law
May the drawee accept part of the amount of a bill of exchange?
Yes, the drawee may limit acceptance to part of the amount of the bill.
What is the rule if a bill is accepted with a changed due date?
Modifying any term other than the amount is treated as a refusal of acceptance, but the acceptor remains bound by what the wording of the acceptance states.
Is conditional acceptance permitted?
No, acceptance must be unconditional.
More articles on Bill of Exchange
- Article 1
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.
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
- 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.
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.