The Effect of the Negligent Holder’s Right to Recourse to the Exchange Guarantee in Commercial Papers Lapses in Jordanian Commercial Law

Abstract

This study aims to study the effect of the lapse of the commercial papers in the Jordanian commercial law. The Jordanian legislator, and according to the article  (190) in the commercial law,  took the cases of lapse in the event of the negligent holder of the commercial paper towards his endorsers and drawers as well as other obligors, and mentioned exclusively the exceptions included within it. In addition, it mentioned  the conflict and contradiction with what was stated  in the text of article (10/ 183) of the same law, in which the negligent holder is responsible for compensating the damage resulting from his negligence or failure provided that the  compensation does exceed the value of the withdrawal bill. The first chapter of this research dealt with the legal system for the lapse of the right of the holder of commercial paper to the exchange guarantee. The second chapter discussed the lapse of the right in the exchange guarantee. This study included  a set of results and recommendations.