Article 26 of the Saudi Commercial Papers Law
المادة 26 من نظام الأوراق التجارية · الفصل الثالث: قبول الكمبيالة
Article 26 treats the drawee's striking out of their acceptance before returning the bill as a refusal of acceptance, presumes the striking out happened before return unless the contrary is proved, and binds the drawee to acceptance notified in writing.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا شطب المسحوب عليه قبوله المكتوب على الكمبيالة قبل ردها اعتبر ذلك رفضا للقبول.
ويعتبر الشطب حاصلا قبل رد الكمبيالة ما لم يثبت العكس، ومع ذلك إذا أخطر المسحوب عليه الحامل أو أي موقع آخر كتابة بقبوله التزم نحوهم بهذا 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 26 explained in plain English
A drawee may write acceptance on the bill of exchange and then change their mind before returning it to the holder. This article deals with that situation:
- Striking out before return is a refusal: if the drawee strikes out the acceptance written on the bill before returning it, this is treated as a refusal of acceptance.
- A presumption that the striking out preceded return: the striking out is considered to have occurred before the bill was returned unless the contrary is proved, so whoever claims it happened after return must prove it.
- Written notice binds: if the drawee has notified the holder or any other signatory in writing of the acceptance, he or she is bound toward them by that acceptance, even if it is struck out afterward.
The practical benefit for the holder is that written notice of acceptance gives protection: the drawee cannot escape his or her obligation merely by striking out the acceptance. It is therefore wise to keep any written notice sent by the drawee.
This article follows Article 25, which treats modification of the bill's terms in the wording of acceptance as a refusal, and precedes Article 27, which regulates designating the place of payment at acceptance.
In a dispute over acceptance or its striking out, you can consult a lawyer specializing in commercial cases and commercial papers.
Practical example
A merchant in Dammam wrote "accepted" on a bill of exchange and sent its holder a written message informing him of the acceptance, then struck out the acceptance before returning the bill. The striking out is treated as a refusal of acceptance under Article 26, but the merchant remains bound by his acceptance toward the holder because he notified him of it in writing.
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 26 of the Saudi Commercial Papers Law
May the drawee strike out his or her acceptance of a bill of exchange?
If done before the bill is returned, it is treated as a refusal of acceptance, and the striking out is presumed to have occurred before return unless the contrary is proved.
Is the drawee bound if he or she notified the holder of acceptance and then struck it out?
Yes, if the drawee notified the holder or any other signatory in writing of the acceptance, he or she is bound toward them by it.
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.