Kuwait Court of Cassation principle number 461

A letter of guarantee. Its nature. The obligation arising therefrom is independent of the relationship between the bank and the customer and that between the latter and the beneficiary. Issuance of a letter of guarantee at the customer's request does not create for him a right to its value, and the amounts it represents are considered owned by the bank until they are paid to the beneficiary. The effect thereof. - 91 - Commercial