Kuwait Court of Cassation principle number 1218

Agreed compensation is an advance agreement assessing the compensation payable for the debtor's breach of his obligation where the subject matter of the obligation is not a sum of money. Existence of this agreement. Its effect: a presumption that the assessment of compensation therein is proportionate to the damage sustained by the creditor. The debtor's proof that the creditor sustained no damage. Its implication: agreed compensation is not payable. - The subject matter of the obligation being a sum of money. Its effect: it is impermissible to agree on assessing the compensation payable in the event of its breach. Example: concerning a rent debt. - 257 - Obligation