Kuwait Court of Cassation principle number 1570

Bank remittance or transfer. One of the most prominent forms of payment through accounting entries. It must be completed pursuant to a written order from the customer. The transfer order may not be payable to bearer. The reason therefor: established banking custom and avoidance of its exposure to loss or theft. Article 354/2 of the Commercial Code. - Bank transfer. The bank must execute the transfer order in accordance with the ordering party's instructions after verifying that the signature on the order is that of the account holder or a person authorized to operate it. It may be effected by a debit entry in the ordering party's account and addition to the beneficiary's balance. - The drawee bank. It is not discharged towards the customer if it pays a cheque, bill of exchange, or transfer order bearing a forged signature attributed to him. The reason therefor. Such instrument lacks an essential requirement, namely the customer's signature, and the consequences of payment fall upon the bank - 299 - Obligation regardless of how skilfully the forgery was executed. The basis thereof: the risks of the profession practised by the bank. The condition thereof. The absence of fault or negligence on the customer's part. An example. - The obligation of the two parties to a joint account: - See: The Legal Principles Established by the Court of Cassation over Forty Years - Volume Nine - Commercial and Labour. - Negotiable-instrument obligation: