The impact of arbitration agreement on disputes that arise from issuing a cheque without account balance, a letter of guarantee and a documentary credit

This paper studies the impact of the arbitration agreement on disputes that arise from issuing a cheque without account balance as it is possible that the involved parties agree to resolve their disputes by arbitration. In this case, the judiciary’s authority is limited to hearing the case, however, the final award is determined by the arbitral proceedings.

The working paper examines the extent of the criminal court’s Jurisdiction in deciding whether the case can be settled by arbitration as it grants the basis of holding an arbitration agreement between a drawer and a beneficiary. The research clarifies the consensus policies in reconciliation cases, as it is not permissible for parties to agree on arbitration in crimes related to issuing a cheque without account balance, while it is permissible to agree on arbitration when determining the compensation that arises from committing these crimes for the benefit of the victim.

The working paper explains the impact of reconciliation in crimes related to issuing a cheque without account balance in accordance to the Egyptian law. The research shows the Constitutional Court’s position when conflicts of judicial rulings arise that are related to the impact of the arbitration agreement on the criminal case.

Regarding the impact of the arbitration agreement on the legal relations between the parties of a bank guarantee letter and a documentary credit, the paper shows an impact with the bank papers parties’. Finally, the paper studies the effect of this agreement on third parties and possibility of holding to this agreement.