Bills of Exchange's Rules In Saudi Arabia Essay

Bills of Exchange's Rules In Saudi Arabia - Essay Example The first law is referred to as the Commercial Court Law, which is popularly referred to as Commercial Court Law. The other law is referred to as Commercial Court Law while the other is the Negotiable Instrument Law. It is worth noting that majority of the provision inherent in these regulations are heavily inspired by sharia laws. The commercial law has a defines critical elements that a document must contain in order to qualify as a bill of exchange. According to Article 1 of the commercial paper law, a bill of exchange must have the word bill written on the face value of the document. The other critical element that must be present in the document, according to Commercial Papers Law is an unconditional order that requires payment of a specific amount. Middle East Economic Digest Conferences (2004) says that the document should also contain the name of the drawer and the drawer. More importantly, it is critical that, there is also place and date creating the bill of payment. Finall y, the drawer must also append his/her signature to the bill to make it valid. Article 2 of the Commercial Papers law further reiterates that when any of the elements in Article are missing then the document seizes to be a bill. The Commercial Papers Law is very comprehensive in that it leaves no hitch that fraudster can capitalize on. Fraudsters are very smart, and they are always on the lookout for gaps that they can use to defraud unsuspecting people. Article 5 of the law is very effective in blocking out potential fraudsters from conducting fraud on transactions involving the bill of exchange. This article expressly states that whenever there is a discrepancy between the amount written in words and the amount written in figures, the amount written in word prevails. The justification of such a move is that amounts written in words are not easy to alter as compared to that mount written in word 12 (Middle East Economic Digest Conferences, 2004).