Kuwait Court of Cassation principle number 748

The obligation of the court of fact to give the papers and instruments submitted to it their true description and correct legal characterization, without being bound by the parties' characterization. Its subjection in this regard to review by the Court of Cassation. - Bill of exchange. Its nature. It contains an order from the drawer to the drawee to pay a sum to the beneficiary. - Promissory note. Its nature. Its 2 parties: the drawer and the holder. - The holder of a promissory note. The legislature excepted him from the general rules for bringing actions by requiring recourse to the payment-order procedure when its conditions are met. This applies if he is a creditor under a commercial instrument and confines his recourse to the drawer, maker, acceptor or aval guarantor of any of them. Article 166 of the Procedures Law. - Payment order. Its conditions: the debt must be a sum of money of a specified amount, due for payment and established in writing, for which no particular form is required, whether a commercial instrument or any other means of written proof. - An application for a payment order based on a promissory note may be directed only against the maker. Article 166 of the Procedures Law. The implication is that - 141 - Commercial this note need not be a commercial instrument. The reason: issuance of the order is independent of the action on the negotiable instrument. - Bill of exchange:-