Kuwait Court of Cassation principle number 1574

Endorsement of a bill of exchange or cheque. Its effect. - The rule that endorsement purges the negotiable-instrument obligation of any grounds leading to its rescission or invalidity, as well as defenses based on the debtor's relationship with the first beneficiary. Its condition: that the holder be in good faith. - Good faith is presumed. The burden of proving the holder's bad faith rests on the debtor having an interest in invoking the defenses. Bad faith in this context. Its nature: not merely the latter's knowledge of the existence of the plea or grounds of defense at the time of endorsement, but the intention to harm the debtor upon obtaining the bill of exchange or cheque.