By Yasmine EDDAM
2 May 2025
Commercial paper remains an essential legal instrument in commercial transactions. These negotiable instruments facilitate payment terms while enabling creditors to enforce their claims. Despite the development of electronic means of payment, they retain specific advantages that businesses need to be aware of. Common characteristics of commercial paper Commercial paper has four fundamental characteristics. They are negotiable instruments, transferable by endorsement or tradition. They carry a precise indication of their value. They represent a sum of money incorporated into the instrument itself. Finally, they represent a short-term claim. This specific legal nature gives them enhanced protection. The legitimate bearer of a bill of exchange benefits in particular from the principle of non-opposability of exceptions. This crucial principle prevents the debtor from invoking against a bearer acting in good faith any defences arising from his personal relationship with the drawer or previous bearers. These characteristics are accompanied by rigorous formalities. The absence of...
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