Kuwait Court of Cassation principle number 2775

Absence of a special provision in Book Two of the Commercial Code concerning discharge of the guarantor. Its import. Application to him of the general provisions governing obligations in the Civil Code. Rationale therefor. - The creditor’s failure or delay in demanding payment from the principal debtor when the guaranteed debt falls due: the guarantor may formally notify him to take the legally required measures against the debtor. The creditor’s failure to take those measures. Its effect. Termination of the guarantee contract and discharge of the guarantor from the guarantee. Nature of those measures. Article 757/2 of the Civil Code. - The term guarantor in Article 757 of the Civil Code is general and unqualified. Import thereof. It includes both jointly and severally liable and non-jointly and severally liable guarantors. Restricting it to the non-jointly and severally liable guarantor. Impermissible. Rationale therefor. - The guarantor under a commercial guarantee is treated as a jointly and severally liable guarantor. - 513 - Obligation