Kuwait Court of Cassation principle number 2833

The relationship between banks and their customers. Its subjection to the principle of autonomy of will. The implication thereof. It is permissible to agree 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 is reduced to those rates as at the date of conclusion of the contract. - Raising the interest rate agreed in a loan agreement pursuant to Central Bank decisions amending it. It is permissible to agree to this in the loan agreement without the need to obtain renewed approval from the customer, giving effect to the concurrence of the wills of the two contracting parties in granting it this permission. The contract's failure expressly to include agreement to this. Its effect. The bank's inability to increase the interest rate on contracts concluded previously, even if the Central Bank increased it. The rationale for this.