Kuwait Court of Cassation principle number 548

Banking activities. Are considered commercial acts, whether on the bank's side or on its customers' side. Article 5 of the Commercial Code. The consequence thereof: loans contracted by banks are commercial acts by their nature, whatever the borrower's status or the purpose of the loan. - 104 - Commercial - Statutory interest runs on the balance debt from the date of closure of the current account unless the parties agree otherwise. - Agreement on the interest rate and the debtor's delay in paying the debt. Its effect. Calculation of default interest on the basis of the agreed rate. Article 2 of the Commercial Code. Example concerning entitlement to default interest on a loan.