Kuwait Court of Cassation principle number 545

Banking transactions. Commercial transactions, whether from the bank’s perspective or from that of its customers. - Loans are commercial transactions regardless of the borrower’s capacity or the purpose for which the loan was allocated. - Suretyship. Its nature. The general rule is that the surety acts gratuitously, not as a speculator. A surety who guarantees a debt considered commercial in relation to the debtor. His obligation is commercial, like the obligation of the guaranteed debtor. The reason for this. - Commercial suretyship. Joint and several suretyship among the sureties and with the debtor. Its effect. - The creditor bank’s granting banking facilities in the form of a loan to the debtor for use in his current account with the bank under the suretyship of a third party - a commercial transaction - the suretyship therein is commercial. Its effect.