Kuwait Court of Cassation principle number 4116

Agreed compensation is an advance agreement assessing the compensation payable upon the debtor’s breach of his obligation where the subject matter of the obligation is not a sum of money. Existence of this agreement. Its effect: a presumption that the compensation assessed therein is proportionate to the damage sustained by the creditor. The debtor proving that the creditor sustained no damage. Its implication: no entitlement to the agreed compensation. - The subject matter of the obligation being a sum of money. Its effect: an agreement assessing the compensation payable in the event of its breach is impermissible. An example: concerning a rent debt.