Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 430

State of Kuwait · Commercial and Labour — Volume 9 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

The relationship of the bank issuing the letter of guarantee with the beneficiary. Its separation from its relationship with the debtor customer. The bank's obligation to pay the amount demanded by the beneficiary so long as it is within the limits of its obligation stated in the letter, without payment depending on an external event, the fulfilment of a condition or the arrival of a due date. The customer may initiate a complaint before the courts if he considers that he is not indebted to the beneficiary or that the indebtedness does not justify what the beneficiary has obtained.
Arabic original
علاقة البنك مصدر خطاب الضمان بالمستفيد. انفصالها عن علاقته بالمدين العميل. التزام البنك بالوفاء بالمبلغ الذي يطالب به المستفيد ما دام في حدود التزامه المبين بالخطاب دون توقف الوفاء على واقعة خارجة عنه ولا على تحقق شرط أو حلول أجل. للعميل أن يبدأ بالشكوى للقضاء إذا قدر أنه غير مدين للمستفيد أو أن المديونية لا تبرر ما حصل عليه المستفيد.
Original Arabic judgment citations

(الطعن ٢٩/٩٣ تجاري جلسة ٩/٥/١٩٩٣ مج القسم الثالث - المجلد الثالث ص ٣٧٠)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 87. PDF pages: 87.

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