Kuwait Court of Cassation principle number 332

Endorsement of a bill of exchange or cheque. Its effect. - The rule that endorsement purges the negotiable-instrument obligation of any grounds leading to its rescission or nullity, as well as defences based on the debtor’s relationship with the first beneficiary. Its condition: that the holder be in good faith. - Good faith is presumed. The burden of proving the holder’s bad faith rests on the debtor having an interest in invoking the defences. Bad faith in this context. Its nature: not merely the latter’s knowledge of the existence of the plea or defences at the time of endorsement, but an intention to harm the debtor upon obtaining the bill of exchange or cheque.