Cheque
Explanation
The law regulates the provisions of the promissory note (le billet à ordre) and the cheque (le chèque). The signer of the promissory note is bound in the same manner as the acceptor of the bill of exchange. The provisions of the guarantee (l'aval) apply to the promissory note. If the guarantee does not specify for whose benefit it is given, it is considered given for the benefit of the signer of the note.
In promissory notes payable at a certain period after sight, the note must be presented to the signer for a visa (le visa). The period after sight begins from the date of this visa. If the signer refuses to date the visa, this must be proven by a protest document (le protêt), and the date of the protest is considered the beginning of the period after sight.
The law has set strict conditions for an instrument to be considered a cheque. This requires six mandatory particulars. The instrument must contain the word cheque in its text, an unconditional mandate to pay a determinate sum, the name of the drawee (le tiré), the place of payment, the date and place of creation, and the signature of the drawer (le tireur).
If one of these particulars is missing, the instrument loses its character as a cheque, except in specific cases. If the place of payment is not mentioned, the place mentioned next to the name of the drawee is considered the place of payment. If multiple places are mentioned, the first place is adopted.
In the absence of these clarifications, the cheque is payable at the principal establishment of the drawee. If the place of creation of the cheque is not mentioned, it is considered created at the place mentioned next to the name of the drawer.
Official legal articles
Think deeper
How does the law balance the strictness of mandatory particulars for creating a cheque with protecting commercial transactions when some are missing?
Flashcards
For whom is the guarantee in a promissory note considered given if its beneficiary is not specified?
It is considered given for the benefit of the signer of the promissory note.
When does the period after sight begin in a promissory note payable after sight?
It begins from the date of the visa placed on the note with the signature of the signer.
What do you do if the signer of the promissory note refuses to date the visa?
This refusal must be proven by a protest document, and the date of the protest is the beginning of the period after sight.
Where must the word cheque be inserted in the instrument?
It must be inserted in the text of the instrument itself in the language used to write it.
Where is the cheque paid if the place of payment is not mentioned in it and several places are mentioned next to the name of the drawee?
The cheque is payable at the place mentioned first.
Where is the cheque considered created if its place of creation is not mentioned in it?
It is considered created at the place mentioned next to the name of the drawer.
Practice questions
What is the legal obligation that falls upon the signer of the promissory note?
The signer of the promissory note is legally bound like the person who accepts the bill of exchange (Article 408).
If the guarantee does not specify the person for whose benefit it is given in the promissory note, who is the legal beneficiary?
If the guarantee does not specify the beneficiary, it is considered given for the benefit of the signer of the promissory note (Article 407).
Which of the following particulars is not one of the six mandatory particulars for the validity of a cheque?
The law does not require mentioning the name of the beneficiary among the six mandatory particulars of the cheque (Article 409).
How is the place of payment determined in the cheque if no clarifications or places are mentioned next to the name of the drawee?
If these clarifications are not mentioned, the cheque is payable at the principal establishment of the drawee (Article 410).
What happens if the signer of the promissory note refuses to place a dated visa?
The refusal must be proven by a protest document, and the date of the protest is the beginning of the period after sight (Article 408).
Case problems
Samir issued a cheque in favor of a commercial company. The instrument contained the word cheque, an unconditional mandate to pay a determinate sum, the name of the drawee, the date of creation, and Samir's signature. However, Samir forgot to mention the place of creation of the cheque in the instrument. Next to Samir's name, there is an address in the city of Tripoli. Is this instrument considered a valid cheque?
Model answer
Yes, the instrument is considered a valid cheque.
The law requires designating the place where the cheque was created as a mandatory particular (Article 409).
An instrument lacking one of the contents is not considered a cheque except in exceptional cases (Article 410).
Among these cases is that a cheque lacking its place of creation is considered created at the place mentioned next to the drawer's name.
Since the Tripoli address is mentioned next to Samir's name, the cheque is considered created in Tripoli and remains valid.
Self-grading rubric
Kamal drew up a promissory note payable one month after sight. The bearer of the note presented the note to Kamal to place a visa on it, but Kamal signed the note and refused to date the visa. How can the bearer of the note legally determine the start of the period after sight?
Model answer
The period after sight begins from the date of the visa placed on the note with the signature of the signer (Article 408).
If the signer of the note refuses to place a dated visa, the law requires proving this refusal by a protest document.
Accordingly, the bearer of the note must organize a protest document to prove Kamal's refusal to put the date.
The date of this protest is the beginning of the period after sight.