Article 97 of the Saudi Commercial Papers Law

المادة 97 من نظام الأوراق التجارية · الفصل الأول: إنشاء الشيك

The Article makes the drawer of a check guarantor of its payment, and treats any clause by which the drawer exempts himself from this guarantee as if it had not been written.

Official text (Arabic)

This article has not been amended since the law was issued.

يضمن الساحب وفاء الشيك، وكل شرط يعفي الساحب نفسه من هذا الضمان يعتبر كأن لم يكن.

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 97 explained in plain English

This Article establishes a basic rule for checks: the drawer guarantees payment of the check. Whoever issues a check remains bound to ensure that its value is paid to the person entitled to it.

The Article adds a protective rule: any clause by which the drawer exempts himself from this guarantee is considered as if it had not been written. If the drawer writes on the check, or agrees, that he is not liable if the bank does not pay, that clause has no effect and his guarantee remains in place.

This rule is linked to Article 96, which allows a check to be drawn to the order of the drawer himself or for the account of another person, and to Article 98, which makes a check payable to a named person transferable by endorsement and allows it to be endorsed even to the drawer or to any other party liable.

In practical terms, the beneficiary can rely on the drawer's liability, and the drawer cannot escape responsibility by a clause he writes. Anyone with a dispute over a check that was not paid would do well to consult a lawyer who specializes in commercial matters and commercial papers.

Practical example

A merchant in Qassim wrote a check to a supplier and added the words "without liability on the drawer". Under this Article, those words are considered as if they had not been written, and the merchant remains guarantor of payment of the check.

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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