Kuwait Court of Cassation principle number 4095

It is permissible to agree in advance on the assessment of compensation, being a penalty clause or agreed compensation. Its effect. Presumption that damage equal to the amount assessed by the contracting parties has occurred. Exemption of the creditor from proving damage. Whoever alleges that the actual damage is less or greater than what was agreed bears the burden of proving this. - The court may reduce the agreed compensation if the debtor proves that its assessment is grossly excessive or that the obligation has been partially performed. - The judgment’s failure to apply the penalty clause according to its conditions, and its conclusion that it lapsed because the obligation lapsed upon rescission of the contract although it remains in existence, and its exercise of its power to assess compensation. A violation of the law.