Defenses that invalidate the bond of an order
As the debtor, the system guarantees you the right to object to the execution of the bond or claim its invalidity if you have legitimate legal reasons. These arguments that you can stick to are divided into two tracks:
First: Formal defenses (invalidity of the bond as a commercial paper):
Based on Article 87 of the Commercial Papers Law, you can argue that the bond is invalid in the following cases:
1- The absence of the phrase (command document), 2- Commenting on a condition, 3- The absence of the name of the person to whom or for whom the order must be fulfilled, 4- Its absence from the date of creation, 5- The absence of the signature of the person who created the document (edited).
Defenses that invalidate the bond of an order
Second: Substantive and executive defenses:
These are defenses that aim to prove the expiration of the fixed right in the bond, and include:
- Executive dispute:
1- Defending forgery or denying the signature: This is challenging the authenticity of the commercial paper by claiming that the signature or fingerprint does not belong to the editor, or that the data has been distorted (such as changing the amount), based on Article (1/3) of the Executive Regulations of the Implementation System.
2- Payment by payment (repayment) or discharge: This is the payment that the value of the bond has been paid in whole or in part to the creditor, or that the creditor has discharged the debtor, in accordance with Article (3/3) of the Executive Regulations of the Implementation System.
- Objective dispute:
1- Payment by statute of limitations (failure to hear the case): The provisions of the statute of limitations for the bill of exchange apply to the bond for an order pursuant to Paragraph (d) of Article Eighty-Nine of the Commercial Papers Law. Accordingly, the case is dropped and is not heard against the bond editor if three years have passed from the due date.
2- Defending the absence of a reason or the invalidity of the relationship: It is the defense that the relationship based on which the bond was issued has expired or been invalidated, in accordance with Article (4/3) of the Executive Regulations of the Implementation System.
Defenses that invalidate the bond of an order
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