Kuwait Court of Cassation principle number 4091

Agreed compensation. A financial sanction imposed by the contracting parties to secure performance of the agreement and redress the harm suffered by the person for whose benefit it was stipulated. - The court of merits may reduce the agreed amount whenever the assessment is excessive or part of the obligation has been performed. Agreement to the contrary. Its effect. Nullity of the agreement. - The right to compensation arises from nonperformance of the obligation or delay therein, whether or not a penalty clause exists. - 755 - Obligation - Restrictions on the authority of the court of merits to reduce agreed compensation.