Kuwait Court of Cassation principle number 2403

Agreed compensation. A financial sanction imposed by the contracting parties to secure performance of the agreement, to draw the damage suffered by the person for whose benefit it was stipulated. - The trial court may reduce the agreed amount where the assessment is excessive or part of the obligation has been performed. An agreement to the contrary. Its effect. Nullity of the agreement. - The right to compensation. Its cause is non-performance of the obligation or delay therein, whether or not a penalty clause exists. - Restrictions on the trial court’s power to reduce agreed compensation.