Regulatory Alerts2010-01-01
Law No. (7) of 2010 Amending Certain Provisions of the Commercial Law Issued by Law No. (27) of 2006
The State of Qatar, through Emir Hamad bin Khalifa Al Thani, issued Law No. 7 of 2010 to amend Article 580 of the Commercial Law (Law No. 27 of 2006) regarding cheque payment obligations and bank liability for early payments. The amended provision mandates that cheques are payable upon presentation, validates post-dated cheques presented before maturity, and holds banks liable for damages if they pay such cheques prior to the specified date. All relevant authorities are directed to implement this law effective May 12, 2010, with publication in the Official Gazette.
Law No. (7) of 2010 Amending Certain Provisions of the Commercial Law Issued by Law No. (27) of 2006
We, Hamad bin Khalifa Al Thani, Emir of the State of Qatar,
Having reviewed the Constitution, and the Commercial Law issued by Law No. (27) of 2006, and the proposal of the Minister of Business and Trade, and the draft law submitted by the Council of Ministers, and after taking the opinion of the Shura Council,
Have decreed the following Law:
Article (1) The text of Article (580) of the aforementioned Commercial Law is replaced with the following: Article (580): "A cheque shall be payable upon presentation, and any statement to the contrary shall be deemed void. If a cheque states a date subsequent to the actual drawing date, and is presented for payment before that date matures, the bank may withhold payment until the day specified therein as its issue date.
If the bank pays before that date, it shall be liable for damages arising from such payment."
Article (2) All competent authorities shall, each within its respective jurisdiction, execute this Law. It shall come into force from 12/5/2010 and be published in the Official Gazette.
Hamad bin Khalifa Al Thani Emir of the State of Qatar