Kuwait Court of Cassation principle number 3306

Treating a loan as commercial. Its condition. Its purpose must be to spend the borrowed amounts on commercial activities. The determining factor is the borrower's apparent intention at the time of the contract, not the eventual use of the borrowed amount. - The debt in dispute arising from an interest-free loan upon which the common intention of the contracting parties converged and whose purpose was not commercial. Its effect. Its subjection to the provisions of the Civil Code prohibiting agreement on interest in return for the use of a sum of money or for delay in performing the obligation, and rendering any such agreement absolutely void as a matter of public policy. The judgment's departure therefrom. It vitiates it by violation of the law and error in its application and necessitates its partial cassation.