Kuwait Court of Cassation principle number 4110

It is permissible to agree in advance on the amount of compensation by which the debtor is definitively bound upon breach of his obligations, to redress the damage sustained by the creditor. The debtor's success in proving that no damage occurred. Its effect. Preclusion of an award - 758 - Obligation under the penalty clause. The debtor's proof that the assessment is grossly excessive. The clause becomes merely a coercive clause. The debtor's performance of part of his original obligation. The judge may reduce the value of the penalty clause. The reason therefor. - Agreement on a penalty clause. Its effect. Establishment of a rebuttable legal presumption that damage occurred, so that the creditor is not required to prove it. The burden of proving that it did not occur falls upon the debtor.