A bill of exchange is a strictly formal document: its validity and effect depend directly on how precisely the requisites established by law are satisfied. One forgotten entry is enough for the paper to lose its force as a bill and for the holder to lose the fast dispute and enforcement mechanisms this law provides. Legal.ge's specialists help you draw up and formalize a bill correctly — both a bill of exchange (negotiable bill) and a simple promissory note — and eliminate in advance the formal defects that would otherwise become a problem in court later.
The Mandatory Requisites of a Negotiable Bill
Under the Georgian Law on Bills, a negotiable bill must contain: the word "bill" in the title of the document and in the text, in the language in which the bill is drawn up; an unconditional order to pay a specified sum of money; the name of the payer; the maturity date; the place of payment; the name of the person to whom payment must be made or by whose order it must be made; the date and place of drafting of the bill; and the signature of the drawer of the bill. This list is exhaustive in the sense that every element verifies the legal nature of the bill and the liability flowing from it.
The Consequence of a Missing Requisite
A document lacking any of the requisites established by law has no force as a bill, save for the exceptions provided for. At the same time, the law supplies default rules for individual requisites: a bill in which no maturity date is indicated is deemed a bill payable on presentation; absent a special indication, the place indicated next to the payer's name is deemed the place of payment and at the same time the payer's domicile; and a bill that does not state its place of drafting is deemed drawn at the place indicated next to the name of the drawer of the bill.
Signature by Another Person and Notarial Attestation
If the drawer of the bill cannot sign it personally for any reason, another person signs at the drawer's request. In that case the bill must be attested by a notary that it was signed at the drawer's request — otherwise the authenticity of the signature becomes disputable, and this directly undermines the reliability of the document. The same rule applies to a simple bill: where another person signs at the holder's request, a notary attests the signature.
In Whose Favour a Bill May Be Drawn
A bill may be drawn, by the personal order of the drawer (the trassant), in favour of the drawer itself or of a third person. This means that the payer may be named either as the drawer itself or as a third person — the structure of the document remains unchanged in either case, and the completeness of the requisites remains decisive.