Kuwait Court of Cassation principle number 2080

Appointing a bank as agent to collect the value of a cheque is subject to the agency provisions of the Civil Code, supplemented by banking custom. - The agent’s appointment of a substitute. Impermissible except with authorization from the principal. Issuance of this authorization. Its effect. Rendering the agent liable only for his fault in selecting his substitute or in the instructions he issued to him. Authorization may be express, implied, or borrowed from the circumstances of the work, as occurs when collection takes place in another country. - The judgment basing its ruling on the agent bank’s liability for the correspondent bank’s errors without ascertaining the extent to which fault existed in its testing of the correspondent bank or in the instructions it issued to it. Inadequate reasoning and an error in the application of the law requiring its cassation.