Article 5 of the Saudi Commercial Papers Law
المادة 5 من نظام الأوراق التجارية · الفصل الأول: إنشاء الكمبيالة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 بالمبلغ الأقل.
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 5 explained in plain English
This article deals with a common problem in bills of exchange, a difference in the amount written in more than one place. It sets two rules:
- If the amount is written in both words and figures and they differ, the amount written in words prevails.
- If the amount is written several times in words or in figures and these differ, the smaller amount prevails.
The practical reason for preferring words is that they are harder to alter or mistake than figures. Taking the smaller amount where the amount is repeated protects the obligor from bearing an amount it is not clear he intended.
Related to this rule is Article 6, which treats a stipulation of interest in a bill as not written. In practice, anyone who draws or receives a bill should check that the amount matches in every place before signing or accepting, to avoid an amount other than the one agreed being adopted. If there is a dispute about the amount, a lawyer specializing in commercial matters and commercial papers can be consulted.
Practical example
Khaled received a bill in which the amount was written in figures as SAR 15,000 and in words as "ten thousand riyals". On a claim, the amount written in words is adopted, that is, SAR 10,000, under Article 5.
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 contentA question about Article 5 of Commercial Papers Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Commercial & 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
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 5 of the Saudi Commercial Papers Law
If the amount of a bill differs between words and figures, which is adopted?
The amount written in words.
What if the amount is written more than once in figures and differs?
The smaller amount prevails, and likewise if it is written several times in words and differs.
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 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.