Legal of “Regeneration of Payments” Principle in Current Bank Account in Light of the Omani Commercial Law
Dr. Mohammad Saeed ALsheyab Dr. Saleh ALBarashdi
DOI:
https://doi.org/10.35682/jjlps.v12i1.78الكلمات المفتاحية:
Current Account، Regeneration of payments، traditional theory، reverse entryالملخص
This study attempted to examine the principle of “regeneration of payments” in current bank account contract, analyze its implications, and explore the significant consequences of principle on both sides of the account. Further, the study endeavored to examine the effects of regeneration principle on payments entered and incorporated into the account.
It has been found that the change in the nature or type of claims needed to enforce or acquire the financial rights incorporated in the current account is not imposed by legal provisions of Omani Commercial Law, but rather, it is an effect to the agreement of parties who established the current account and agreed to accrue such regeneration effect on payments or financial rights incorporated into the current account. Thus, the effects of regeneration principle are based on and related to contract rather than legal provisions of Omani Commercial Law.
