Commercial Papers Law

Chapter 1: Bill of Exchange

Article 1

  • A bill of exchange shall include the following particulars:

    • a) The statement “bill of exchange” written in the body of the instrument and in the language in which it is issued.

    • b) An unconditional order to pay a fixed amount of money.

    • c) Name of the obligor (drawee).

    • d) Maturity date.

    • e) Place of payment.

    • f) Name of the payee, whether the bill is payable to bearer or to order;

    • g) Date and place of issuance.

    • h) Signature of the issuer (drawer).

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Article 2

  • An instrument that does not include any of the particulars stated in Article 1 shall not be deemed a bill of exchange except in the following cases:

    • a) If a bill does not include a maturity date, it shall be deemed payable at sight.

    • b) If a bill does not include a place of payment or the drawee’s domicile, the place indicated next to the drawee’s name shall be deemed both the place of payment and the drawee’s domicile.

    • c) If a bill does not include the place of issuance, it shall be deemed issued in the place indicated next to the drawer’s name.

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Article 7

  • The competence of an obligor to pay a bill of exchange shall be governed by the law of his country of residence. For Saudi nationals, the age of competence is 18.

  • If a person is deemed incompetent under the law in force in his country, his obligation under the bill shall remain valid if he signs it in the territory of a country where he is deemed competent under its law.

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