Kuwait Court of Cassation principle number 3727

Letter of guarantee. Its nature. An undertaking by the bank, at its customer’s request, to pay a specified amount to the beneficiary whenever the latter demands it within the period specified therein. Independence of this obligation from the relationship between the bank and the customer and that between the latter and the beneficiary. Effect thereof. Payment by the bank to the beneficiary within the period discharges the obligation. The beneficiary’s waiver of his right or the extinction of the bank’s obligation for any other reason. Its effect. Release of the security furnished by the customer.