Qatar Introduces A New Commercial Law Amendment Regarding Cheques

The Official Gazette dated March 7, 2024, published Law No. 1 of 2024 amending provisions of Law No. 26 of 2007 promulgating the Commercial Law ("Amendment"). Adopting the approach of some neighbouring jurisdictions, drawee banks in Qatar are now required to effect the partial payment of cheques on demand.

Pursuant to the Amendment, Article 585 of the Commercial Law has been replaced by the following text:

"If the consideration for payment is less than the amount of the cheque, the drawee shall partially pay [the cheque holder] to the extent in his possession, unless the holder refuses. The drawee shall, in the event of partial payment, make a note of each partial payment instance on the back of the cheque to that effect, and give the holder the original cheque and a certificate of such [partial] payment. The holder has the right of recourse in respect of the remaining [unpaid] amount on the basis of the certificate and the original of the cheque marked thereon."