Compensation for Breach of Contract Under Kuwaiti Law

Elements of Contractual Liability

To claim compensation, you must first establish a breach of contract: failure to perform an obligation, incomplete performance, or delayed performance. Contractual fault is the basis of liability.

The second element is damage, meaning the loss suffered or profit forgone by the creditor because of the breach. Finally, causation must be established: the damage must be a direct result of the other party's breach.

Determining the Amount of Compensation

The assessment of compensation is subject to the judge's discretion, unless the parties have agreed in advance on an amount of compensation through a penalty clause. The judge seeks to provide fair redress for the harm suffered.

Compensation does not cover uncertain future losses; instead, it focuses on actual, established damage. Proving this damage requires documents, invoices, and strong evidence.

Formal Notice as a Condition for Claiming Compensation

In many cases involving delay, formal notice of default is an essential condition for establishing liability and claiming compensation. Failure to give the breaching party formal notice may deprive you of the right to compensation for the period of delay.

Formal notice must be served in a legally valid manner that documents the demand and formally places the other party on notice of its legal responsibilities.

Penalty Clauses and Their Adjustment

A penalty clause makes it easier to claim compensation, as the injured party need not prove the amount of damage and need only establish the breach.

However, the court has the power to adjust the amount stipulated in the penalty clause if it considers that amount disproportionate to the actual damage or unfair.

How Can Fahad Al Haddad Law Firm Help You?

If you have suffered a breach of contract, your first step is to document all correspondence and evidence. Our lawyers specialise in assessing damages and drafting legal claims to safeguard your rights.

We help you accurately assess your legal position before commencing any court proceedings, to maximise your prospects of successfully recovering the compensation you are entitled to.

Frequently asked questions