A promissory note is one of the types of financial instruments that are used to facilitate payment operations, as this bond carries explicit instructions to pay a sum of money to the beneficiary at a specific time. The promissory note is used by many individuals and companies to guarantee their rights.
And since the bond is one of the topics that many ask about, and about the information on this subject in terms of the method of concluding this bond, its conditions, and the method of canceling it as well.
There are also many reasons that lead to the cancellation of the promissory note in Saudi Arabia, so in this article, we will show you the conditions for canceling this promissory note and who can cancel the promissory note and when the promissory note is canceled, and how to do it electronically, so follow us ……
Is it possible to cancel a promissory note in the Saudi system?
Yes, there are several mandatory conditions that must be met in order for the bond to be issued to an order. When a defect occurs in one of these conditions, the bond is canceled. Among the conditions that must be met are the following:
- That the financial right be present.
- And this financial right should be specific.
- And the duty to perform immediately.
When a defect occurs in these conditions, the bond is then canceled for an order, and it can also be canceled when paying the financial dues, and if the bond is also paper, and the help of the electronic portal of Najer is made so that you can cancel the bond.
Call the commercial Law experts at Al Othman office on +966-535-008-888
Who can cancel the bond for an order?
Only the creditor is the person who can cancel the promissory note. Neither the debtor nor any person affiliated with him can cancel the promissory note.
And if it was agreed to create the bond for an order, then no modifications can ever be made to the bond.
Conditions for canceling a promissory note
- There must be a financial right payable.
- That this financial right be assigned.
- The financial right must be paid immediately.
How to cancel a promissory note electronically (via Nages Portal)
You can cancel any executive document or order document electronically through the Nages portal of the Ministry of Justice.
After all the necessary procedures have been taken by the competent authorities, and the commitment to pay all financial dues, you can cancel the request for the execution of the bond for an order electronically through the Najez portal and click on the execution service, and then select the execution request and cancel it.
And you must follow the following steps in order to be able to cancel the execution of the bond for an order:
- First, you have to log in to the online portal Nahz.
- Go to the implementation service after logging in.
- The Executive Complaints page appears, and the Executive Requests page appears.
- You have to select and click on the executive order that you wish to cancel.
- You have to go down to the end of the screen and choose Request Action from the Department.
- After that, you fill out the page that appears, requesting the termination of an executive document.
- Then remember why.
- Then you click on the acknowledgment and pledge to cancel the bond.
- You press send, and the request is received, and after 24 hours the request is complete.
Call the commercial Law experts at Al Othman office on +966-535-008-888
When is the bond canceled for an order?
The bond for an order is canceled through the Najez electronic portal, by terminating an executive request, after the debtor has paid the dues owed by him.
That is, the bond is canceled after payment, and the paper bond can also be canceled.
Is it necessary to resort to the Court of Execution to cancel the bond for an order?
The bond is canceled electronically, as we mentioned, but this is as long as the bond is not referred to execution, as in the event that the bond is referred to execution, the bond is not canceled until after paying the amount and resorting to the court.
The defenses to cancel the bond for an order in the Saudi system
Defenses are aspects of defense that the debtor uses in order to get rid of the debt and the obligation that he owes. The system has identified some defenses, including:
- Payment by Disadvantages of Satisfaction: Coercion, Fraud, and Deceit.
- Payment through the lack of cause between the creditor and the debtor.
- Payment through the invalidation of the basic relationship or non-implementation.
- Payment is due to one of the reasons for exchange obligations, such as fulfillment, discharge, or consolidation.
Call the commercial Law experts at Al Othman office on +966-535-008-888
Is it necessary to review the court after paying the amount of the bond execution of an order?
And in the event that you file a lawsuit in the Execution Court, and the defendant pays the agreed amount, and it is transferred to the Execution Department, then some time may pass after the payment, but the amount has not been transferred to the plaintiff’s account, and in this case, you do not need to review the court and go to it using checks printed.
This is because the Saudi system seeks to save time, effort, and cost for citizens. It made it possible to do the matter through the Najiz website, which is a quick way that allows you to verify this by linking with the central bank, and you do not have to go to court.
When does a promissory note expire?
The validity of the promissory note entails a certain period, and accordingly, the beneficiary goes to the Execution Court immediately, asking the debtor to fulfill the promissory note, and the matter does not need to go to the ordinary courts “subject courts”, and this is what distinguishes the promissory note from others.
And through the agreed maturity date, the validity period of the bond has two forms:
- The first: In the event that there is a specific and precisely defined maturity date, the validity of the promissory note is for a period of 3 years, and it starts from the maturity date.
- Second: In the event that there is no specific and specific maturity date, then the validity period of the bond is 4 years from the maturity date as well.
Through these two cases, the legislator aimed to balance the two parties, as protection was not limited to the beneficiary only, but to both parties.
What invalidates the bond for an order?
A promissory note is invalidated by several things, including:
- The expiry of the period agreed upon in the commercial papers, the bond is invalidated, and the period is determined from the beginning of the maturity date up to 3 years.
- The fact that the document includes the condition of recourse without protest, and the lawsuits related to recourse prescribe to the endorsers after the expiration of 6 months, starting from:
- The date of the plaintiff’s payment.
- The date of fulfillment of the one who wrote the bond.
- The day the claim was filed.
Consult the best commercial lawyer in Saudi Arabia
If you have an executive bond or business dispute and want to resort to commercial litigation, please feel free to contact the Commercial Law experts At Al-Othman Law Firm, because they have legal experts whose experience extends to more than 15 years in commercial systems, and the expertise of their staff of consultants exceeds more than 22 years in Saudi commercial systems, and Al-Othman Company includes The best commercial lawyer in Saudi Arabia and Riyadh.
And the office of Al Othman Lawyers and Consultants is pleased to serve you, so do not hesitate to Contact us and consult us Where the Al-Othman law firm is considered one of the best offices in the Kingdom
Call the commercial Law experts at Al Othman office on +966-535-008-888
Frequently Asked Questions
Is it possible to cancel the bond for an order after approval of its establishment?
Yes, the bond can be canceled for an order after approval of its establishment, but the creditor accepts it, not through the debtor.
Is it possible to amend the bond for an order?
No modification can be made to the promissory note after approval of its creation, and it can be canceled only after payment, and paper bonds can also be canceled.
What does closing a promissory note mean?
The meaning of closing the promissory note is that the creditor is not entitled to claim the promissory note from the execution court.
Is it possible to submit the bond for an order to the Execution Court before its due date?
The bond for an order cannot be presented to the court before the due date
Conclusion
To this we have come to the end of the article in which we talked at length about the cancellation of an order promissory note, and how the promissory note is canceled electronically, and in order for the procedures to be easier and more flexible for you to Contact the office of Al Othman As it is specialized in such cases and is considered one of the best law firms in Riyadh.
In conclusion, the judicial system in the Kingdom is making every effort to keep pace with modern technology and to facilitate many procedures for citizens without their need to go to court, through electronic services that it has made available to everyone.
Call the commercial Law experts at Al Othman office on +966-535-008-888
