Article 9 of the Saudi Commercial Papers Law
المادة 9 من نظام الأوراق التجارية · الفصل الأول: إنشاء الكمبيالة
Article 9 provides that signatures on a bill of exchange that do not bind their signers, such as forged, fictitious or incapable persons' signatures, do not affect the validity of the other signatories' obligations.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا حملت الكمبيالة توقيعات أشخاص ليست لهم أهلية الالتزام بها أو توقيعات مزورة أو توقيعات لأشخاص وهميين أو توقيعات لا تلزم لأي سبب آخر الأشخاص الذين وقعوا الكمبيالة أو الذين وقعت بأسمائهم، فإن التزامات غيرهم من الموقعين عليها تظل مع ذلك صحيحة.
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 9 explained in plain English
This article sets out what is known as the principle of the independence of signatures on a bill of exchange. Each person who signs a bill is bound by his or her own signature, and that obligation is not affected by a defect in someone else's signature.
The article lists the kinds of signatures that may not bind those who made them:
- Signatures of persons who lack capacity to be bound by the bill of exchange.
- Forged signatures.
- Signatures of fictitious persons.
- Signatures that do not bind, for any other reason, the persons who signed or in whose names they were signed.
In all these cases, the obligations of the other signatories remain valid. This rule complements Article 8, which limited the invalidity of the obligation of a non-merchant minor and a person with no capacity to them alone, and it is also linked to Article 10, which deals with a person who signs on behalf of another without authority.
The practical benefit is that the holder of a bill of exchange does not lose the right to claim against the validly bound signatories merely because a forged or void signature is discovered on it. To assess the position in a particular dispute, you can consult a lawyer specializing in commercial cases and commercial papers.
Practical example
A company in Jeddah received a bill of exchange bearing several endorsements, and it then turned out that one of the signatures was forged. Under Article 9, this does not affect the obligations of the other signatories, so the company keeps the right to claim against those who signed validly.
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 9 of the Saudi Commercial Papers Law
Does a forged signature invalidate the whole bill of exchange?
No, the obligations of the other signatories of the bill remain valid.
What is meant by the independence of signatures on a bill of exchange?
It means that a defect in one signatory's signature, such as forgery or lack of capacity, does not affect the validity of the other signatories' obligations.
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.