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.
The Simple Bill: Different Requisites, One Logic
A simple bill contains: the designation "bill" in the text, in the language of drafting; an unconditional promise to pay a specified sum; the maturity date; the place of payment; the name of the person by whose order payment must be made or to whom payment must be made; the place and date of drafting; and the drawer's signature. The difference from the negotiable bill is that the payer's name is not required here — the obligation is performed by the drawer itself. The consequence of a missing requisite is the same: a document lacking even one requisite has no force, save for exceptions; a simple bill without a maturity date must be paid on presentation.
The provisions on negotiable bills apply to simple bills insofar as they are compatible with the nature of the simple bill — including the norms on indorsement, maturity, payment, claims for non-acceptance or non-payment, payment through an intermediary, copies, alterations, limitation, and the computation of time periods. The drawer's liability is equally strict: the drawer of a simple bill is liable in the same way as the acceptor of a negotiable bill. A simple bill payable a fixed time after presentation must be presented to the the drawer within the period established by law, and the drawer's refusal to date the bill is certified by a protest act, the date of which is deemed the starting moment of the presentation period.
Default Rules for Indicating Places
For the simple bill, the same default logic on places applies: absent a separate entry, the place of issue of the bill is deemed the place of payment and at the same time the holder's place of residence, while a simple bill that does not indicate its place of issue is deemed signed at the place indicated next to the designation of the bill's issuance. In practice this means that correctly indicating the place of payment determines not only where the bill must be presented, but also where a statement of claim will need to be filed if necessary — so leaving this field unattended is never worth it.
Restrictions on Issuing Bills to Physical Persons
The law particularly restricts the issuance of bills to natural persons: a microfinance organization is prohibited from issuing a bill with a value of up to 100,000 (one hundred thousand) lari to a natural person, unless it issues bills to fewer than 20 natural persons. An entrepreneur may issue a bill to more than 20 natural persons only under the procedure and requirements established by the Organic Law of Georgia on the National Bank of Georgia. These norms prevent the use of the bill against the population as a formalized loan instrument without appropriate state oversight.
Whether you plan to issue a bill or have already received one for payment, Legal.ge's lawyers will examine every requisite of the document, assess its validity, and help you avoid the formal mistakes that turn a bill into a worthless piece of paper. A correctly formalized bill, in turn, is the most reliable foundation for your legal claim.