Kuwait Court of Cassation principle number 1741

The liability remaining after rescission of the contract is tortious, determined by the contracting between pursuant to a penalty clause concerning the conditions of the contracting party who is entitled to compensation on the basis of its encompassing contractual liability and tort liability also. - 340 - Obligation - A penalty clause or agreed compensation is an agreement in advance on the assessment of compensation. Its effect and rationale: the assessment of compensation relates to the element of damage in the field of proof, as it entails a presumption that damage has occurred equal to what the contracting parties assessed. The burden of proving that no damage occurred rests on the debtor. Articles 302, 303 Civil Code. Forms of contractual liability: liability for the use of an automated teller machine card: