The Effect of the Death of the Check Drawer A Study of the Rules of Jordanian Commercial Law, the Military Order Amending the Provisions of the Commercial Law, and the Instructions of the Palestinian Monetary Authority

Abstract

The study aims to clarify the effect of the death of the cheque drawer on the relationship linking the drawer to both the beneficiary and the drawee bank, through a comparative analysis between the provisions of the Jordanian Commercial Law, the Israeli military orders applied in Palestine, and the instructions of the Palestinian Monetary Authority. It defines the concept of the cheque under the Commercial Law and the amendment introduced by the military orders, which establish the post-dated cheque. The study adopts the descriptive method in a comparative approach by examining the provisions of the Jordanian Commercial Law No. (12) of 1966, the Military Order No. 889 applied in the West Bank, and the instructions of the Palestinian Monetary Authority, linking them to judicial applications. The findings indicate that the cheque functions as both a payment and credit instrument, leading to several legal consequences upon the drawer’s death, including the termination of the contractual relationship with the drawee bank and the maturity of a post-dated cheque due to the lapse of the term. The study concludes by urging the Palestinian legislator to clarify its position regarding Article (250) of the Jordanian Commercial Law in light of Military Order No. 889 and the Monetary Authority’s instructions, and to issue Palestinian legislation amending the rules governing cheques, repealing Military Order No. 889, and regulating the legal effects of the drawer’s death and the rights of cheque holders.