Commercial Transactions Law · Federal Decree-Law 50 of 2022
Article 649
Book Four: Commercial Papers > Part Three: Cheques > Chapter Three: Payment of Cheques
English translation
1. A Cheque drawn inside or outside the State and payable in the State must be presented for payment within (6) six months.
2. The deadline mentioned in Clause (1) of this Article starts from the date indicated on the Cheque as the date of its issuance.
3. Presentation of a Cheque to a bank or withholding its sum by telephone or by any means prescribed by law, including modern technology, by this bank to the Drawee bank, as well as presenting a Cheque to one of the legally recognized clearing houses, is deemed as presenting such Cheque for payment.
Official translation, as published by the portal.
Official Arabic text
.1 الشيك المسحوب في الدولة أو خارجها والمستحق الوفاء فيها يجب تقديمه للوفاء خلال (6) ستة أشهر.
.2 يبدأ الميعاد المذكور في البند (1) من هذه المادة من التاريخ المبين في الشيك أنه تاريخ إصداره.
.3 يعتبر تقديم الشيك إلى أحد المصارف أو حجز مبلغه هاتفياً أو بأي وسيلة مقررة قانوناً بما فيها وسائل التقنية الحديثة من قبل هذا المصرف لدى المصرف المسحوب عليه وكذلك تقديم الشيك إلى إحدى غرف المقاصة المعترف بها قانوناً في حكم تقديمه للوفاء.
What it means when you sign
This article sets the period within which a cheque must be presented for payment. A cheque drawn inside or outside the State and payable in the State must be presented within 6 months, counted from the date written on the cheque as its issue date. The article also says what counts as presentation: giving the cheque to a bank, that bank holding the amount with the drawee bank by phone or another lawful method including modern technology, or presenting the cheque to a legally recognised clearing house.
When you are about to sign or accept a cheque, this article means that the 6 months run from the written date, not from the day the cheque was handed over. A post-dated cheque therefore starts its period on the date it carries. A contract clause that gives cheques as payment, or that sets a timetable for presenting them, may be read against this period. It is worth checking the dates on the cheques and when the contract expects them to be presented to the bank.
In Fahm reports this article usually sits under: Ambiguity and gaps
Related articles
- Article 648Cited in Fahm reportsThis article governs when a cheque can be paid.
- Article 650This article deals with a cheque drawn between two countries that use different calendars.
- Article 86This article deals with interest on late payment of commercial debts.
- Article 87This article lets a creditor ask for extra compensation on top of delay interest, but only where the creditor proves that the loss beyond that interest was caused by the debtor's deception or serious error.
- Article 88Cited in Fahm reportsThis article bars a creditor from claiming compound interest, meaning interest charged on interest that has already built up and remains unpaid.
- Article 89This article covers instruments for paying money or delivering goods.