Bills of Exchange Under Syrian Law
It is not merely a debt document… understand its effect before signing
A bill of exchange is one of the commercial instruments regulated by Syrian Commercial Law No. /33/ of 2007. It is not merely a document acknowledging a debt, but a commercial instrument that creates important legal obligations for its parties.
Its concept is based on a person known as the drawer issuing an unconditional order to another person, known as the drawee, to pay a specified sum of money to a specified person or to that person’s order on the maturity date. Article /246/ identifies the particulars that a bill of exchange must contain, including the amount of the debt, the names of the drawee and beneficiary, the maturity date, the place of payment, the date of issue, and the drawer’s signature.
Is the signature alone sufficient?
Not entirely.
A bill of exchange is subject to formal requirements established by law. The omission of certain particulars may cause it to lose its character as a bill of exchange, except in cases expressly addressed by law. For example, if no maturity date is stated, the instrument is deemed payable at sight.
Accordingly, a person should not sign an incomplete bill of exchange or one signed in blank without understanding the consequences that may follow if its particulars are completed later.
Why is a bill of exchange a powerful debt-collection instrument?
Because its value extends beyond mere evidentiary purposes.
Article /447/ of the Syrian Civil Procedure Law No. /1/ of 2016 permits a creditor with a monetary debt established by an endorsable commercial instrument to approach the Enforcement Department directly to seek collection of the debt, provided that the debt is due, certain in amount, and the jurisdictional requirements established by law are satisfied.
Therefore, it is not accurate to describe a bill of exchange as an “official instrument.” More accurately, it is a commercial instrument granted special legal force in evidence, collection, and enforcement when its requirements are satisfied.
Can it be transferred?
Yes. As a general rule, a bill of exchange is transferable by endorsement, even if it does not expressly include the words “to order,” unless it contains a clause prohibiting this in accordance with the provisions of the Commercial Law. This gives bills of exchange significant importance in commercial and credit transactions.
Before you sign:
Always check the amount, beneficiary’s name, drawee’s name, maturity date, place of payment, and reason for issuing the bill of exchange, and keep a complete copy after signing.
Do not treat signing a bill of exchange as a mere formality for obtaining a loan, making a purchase, or securing a transaction. The instrument you sign today may become tomorrow the basis for enforcement proceedings and attachment of your assets if it becomes due and is not paid in accordance with the law.
Baghdadi Law Perspective:
A bill of exchange is not merely a document proving the existence of a debt; it is a commercial instrument governed by a special legal framework and may give its holder a swift route to enforcement when its requirements are satisfied.
Therefore: Do not sign a bill of exchange before reading every detail and understanding its purpose, amount, and maturity date.
Reference: Syrian Commercial Law No. /33/ of 2007, particularly Articles /246 et seq./, and the Civil Procedure Law No. /1/ of 2016, particularly Article /447/.