Chapter One: Trade in Generally

Comparisons
Commercial securities
Commercial register
(papers)
Is a record or a book which the Are the papers that merchants
merchant’s data is recorded deal with among themselves
by allocating a page for every Instead of
merchant in this record, in Bank notes when paying in
which all matters related to his their commercial transactions.
commercial activity and the
amendments that occur
therein are recorded.
 Chapter Three: Banking operations
Comparisons
Letter of guarantee
Is the document issued by your
bank to ensure your supplier
get paid for the goods or
services that he provided to
your company, in the event
that your company itself can’t
pay.
Letter of credit
Is a financial contract
between a bank’s customer
and a beneficiary, Generally
issued by an importer’s bank,
the letter of credit guarantees
the beneficiary will be paid
once the conditions of the
letter of credit have been met.
 Chapter Three: Banking operations
Comparisons

Cash deposit Cash instrument

Is an amount of money that a
person deposits into their bank
account
Through
1- An electronic transfer ATM
OR
2- In person with a bank teller
Are financial instruments with
values directly influenced by
the conditions of the markets
Types of cash instruments
1- Securities
2- Deposits
3- Loans
 Chapter Four:
Commercial Papers
Check Bill of exchange
1-Definition: is a written 2-Definition: is an unconditional
order, dated and signed order in writing addressed by one
by it’s maker (drawer), person (drawer), to another
directing a bank (drawee), (drawee), signed by the person
to pay a specified sum to giving it, requiring the person to
a named person or to that whom it was addressed to pay on
person’s order on demand demand or at fixed or
(payee). determinable future time a certain
sum in money to order or to bearer
(payee).
 Chapter Four:
Commercial Papers

Parties of Check Parties of Bill of Exchange

1- Drawer: is the person or 1- Drawer (Creditor): is the party that
entity that issues the check. issue a bill of exchange.

2- Drawee: is the bank which 2- Drawee (Debtor): is the party to

pays the check amount. which the order to pay is sent.

3- payee: is the person or entity 3- payee (beneficiary): is the party

that receives the check. to which the bill of exchange is
payable.
 Chapter Four:
Commercial Papers
Check Bill of exchange

2- There is only one date 2- The Bill of Exchange

on the check, which is has two dates, the first
the date of issuance. one is the date of
issuance and the
second is the due date.
 Chapter Four:
Commercial Papers
Types of Checks:
 Bad Check: is the check that doesn’t contain
mandatory data such as (The Name and
Signature of the Drawer).
 Due check: is the check that can’t be cashed
from the bank due to the absence of the
check amount.
 Chapter Four:
Commercial Papers
Types of Checks:
 Blank check: is the check which issued without
writing the name of the beneficiary (payee)
and the amount of the check.
 Dishonored check: is the check the doesn’t
meet the bank account to pay the amount of
check.
 Chapter Four:
Commercial Papers
Types of Checks:
Not sufficient funds check: is the check
which it’s account doesn’t have the money to
cover the transaction.
Check account (Drawing account): is the
bank account number or is the amount in the
bank.
 Chapter Four:
Commercial Papers
Common provisions
 1- In case that the check amount numbers
differs from the amount of the written check, the
law considered to be written.
 2- If the check is empty from the word “Check” ,
it will not considered as a check, and the
provisions of the check will not be applied to it.
 Chapter Four:
Commercial Papers
Common provisions
 3- Putting the signature of the drawer under details
of check means: the approval to everything that is
written above the signature.
 4- The date of the check: is the date of it’s issuance
and not it’s cashing, because the payment of the
amount of the check is as soon as the payee
(beneficiary) receives the check from the drawer.