Kuwait Court of Cassation principle number 1058

Appointing the bank as agent to collect the value of a cheque. Subjection to the agency provisions contained in the Civil Code, supplemented by banking custom. - An agent's appointment of a substitute. Impermissible except with authorization from the principal. Issuance of this authorization. Effect. Rendering the agent liable only for its fault in selecting its substitute or in the instructions it issued to it. Authorization may be express, implied, or presumed from the circumstances of the work, as occurs when collection takes place in another State. - The challenged judgment basing its ruling on the agent bank's liability for the correspondent bank's fault without ascertaining the extent to which fault existed in its selection of the correspondent bank or in the instructions it issued to it. Deficiency and error in applying the law requiring its cassation.