The law in Qatar allows the use of post-dated cheques as a method of payment and provides for certain protections in relation to them.
However, the status of the protection was in doubt on May 12 when Article 580 of Law No. (27) of 2006 promulgating the Commercial Law of Qatar (Commercial Law), which provides that “the cheques shall be payable at sight”, was due to be implemented.
Fortunately, a new Law No. (7) of 2010 amending Article 580 came into force two days later. The banking sector and the legal and business communities in Qatar welcomed the new law because it ensured the continuity of the commercial transactions relying on post-dated cheques, which Article 580 would have disallowed.
Prior to 2004, commercial (and civil) matters were governed by the 1971 Civil and Commercial Code of Qatar. The Code was comprehensive and addressed a variety of matters, including the processing of post-dated cheques. According to Article 457 of the Code, a cheque was payable on sight. However, where a cheque provided for a future issue date, and a bank proceeded to cash the cheque prior to that date, the bank would be liable for any damages arising from such payment.
Check mate to williamb I think.
The law in Qatar allows the use of post-dated cheques as a method of payment and provides for certain protections in relation to them.
However, the status of the protection was in doubt on May 12 when Article 580 of Law No. (27) of 2006 promulgating the Commercial Law of Qatar (Commercial Law), which provides that “the cheques shall be payable at sight”, was due to be implemented.
Fortunately, a new Law No. (7) of 2010 amending Article 580 came into force two days later. The banking sector and the legal and business communities in Qatar welcomed the new law because it ensured the continuity of the commercial transactions relying on post-dated cheques, which Article 580 would have disallowed.
Prior to 2004, commercial (and civil) matters were governed by the 1971 Civil and Commercial Code of Qatar. The Code was comprehensive and addressed a variety of matters, including the processing of post-dated cheques. According to Article 457 of the Code, a cheque was payable on sight. However, where a cheque provided for a future issue date, and a bank proceeded to cash the cheque prior to that date, the bank would be liable for any damages arising from such payment.