Kuwait Court of Cassation principle number 1278

The relationship between banks and their customers. Its subjection to the principle of autonomy of the will. Its import. The permissibility of agreeing in those contracts on the interest rate applicable to loans granted to them. The condition for this. That this rate not exceed the rates announced by the Central Bank; otherwise, it shall be reduced to those rates at the date of conclusion of the contract. - Increasing the interest rate agreed upon in the loan contract in accordance with Central Bank decisions amending it. This may be agreed upon in the loan contract without the need to obtain renewed approval from the customer, giving effect to the concurrence of the intentions of the two parties to the contract to grant it this permission. The contract's failure to contain an express agreement to that effect. Its effect. The bank's inability to increase the interest rate on contracts concluded previously, even if the Central Bank increases it. The reason for this. Representation in contracting: