Kuwait Court of Cassation principle number 2421

It is permissible to agree in advance to determine the amount of compensation ultimately binding on the debtor upon breach of its obligations to redress the damage sustained by the creditor. The debtor's success in proving that no damage occurred. Its effect. No award under the penalty clause. The debtor's proof that the assessment is greatly exaggerated. The clause becomes merely a deterrent clause. The debtor's performance of part of its original obligation. The judge may reduce the value of the penalty clause. The reason for this. - Agreement on a penalty clause. Its effect. A rebuttable legal presumption arises that damage has occurred, so the creditor is not required to prove it. The burden of proving that it did not occur falls on the debtor.