Kuwait Court of Cassation principle number 3183

Classification of a loan as commercial. Its condition. Its purpose must be to expend the borrowed sums on commercial activities. What matters is the borrower's apparent intention at the time of the contract, not the ultimate use to which the borrowed sum was put. - The disputed debt arising from an interest-free loan upon which the contracting parties' common intention converged and whose purpose was not commercial. Its effect. Its subjection to the provisions of the Civil Code prohibiting agreement on interest in consideration of the use of a sum of money or in consideration of delay in fulfilling the obligation, and the absolute nullity of every such agreement as a matter of public - 622 - Loan policy. The judgment's contravention thereof. This vitiates it by violation of the law and error in its application and requires its partial cassation.