Bounced Cheque as an Enforceable Instrument: A Comparative Study between the United Arab Emirates (UAE) & French Legislations

Abstract

Purpose: This research aims to define the bounced cheque, which is considered an Enforceable Instrument, and to clarify its cases, implementation procedures, and the conditions associated with this execution through a comparative study of the prevailing legal provisions in both Emirati and French law. Theoretical reference: The study examines the concept of a bounced cheque as an Enforceable Instrument under the legal frameworks of the UAE and France. It analyzes the criteria, cases, and procedural requirements for executing a bounced cheque in both jurisdictions, highlighting the differences and similarities in their legislative approaches. Method: A comparative analysis was conducted, scrutinizing the legal provisions and enforcement procedures related to bounced cheques in Emirati and French law. The study involved reviewing relevant statutes, case laws, and legal commentaries to understand the practical implications of treating a bounced cheque as an Enforceable Instrument in both countries. Results and Conclusion: The research reveals that in UAE law, a bounced cheque is considered an Enforceable Instrument as soon as the bank notes the absence of sufficient funds or that the drawer's account has been closed. In contrast, French legislation grants Enforceable Instrument status to an unpaid cheque only after a thirty-day period, allowing the drawer time to settle the cheque's value or reach a settlement with the beneficiary. The study concludes that while both legal systems recognize the enforceability of bounced cheques, they differ significantly in the timing and conditions under which this enforceability is granted. Implications of research: The findings suggest that while the immediate enforceability of bounced cheques in the UAE provides swift recourse for beneficiaries, the French approach of granting a grace period offers a more balanced consideration for the drawer. The research implies that incorporating a reasonable time frame for fulfilling the value of the bounced cheque, as suggested in the recommendations, could harmonize the interests of both parties involved. Originality/value: The research provides a comprehensive comparative analysis of the enforcement of bounced cheques in Emirati and French law, offering valuable insights into the strengths and weaknesses of each system. The proposed recommendation of a balanced time frame for cheque fulfillment contributes to the ongoing discourse on optimizing legal procedures for financial instruments, potentially influencing future legislative reforms.