Kuwait Court of Cassation principle number 2608

Considering a loan commercial. Its condition. The purpose must be to expend the borrowed sums on commercial activities. The determining factor is the borrower’s apparent intention at the time of the contract, not the ultimate use of the borrowed sum. - The disputed debt arising from a benevolent 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 performing the obligation. Every such agreement is absolutely void as a matter of public policy. The judgment’s contravention thereof. Vitiates it by violation of the law and error in its application and necessitates its cassation.