Kuwait Court of Cassation principle number 750

Bill of exchange. Its nature. An order issued by the drawer to the drawee to pay a specified sum of money to the beneficiary on the maturity date stated therein. This order does not create a legal connection between the beneficiary and the drawee until the latter complies with the order and undertakes to pay the value of the bill upon its maturity, by signing in acceptance of this payment. - Promissory note. Its nature. An undertaking by the drawer to pay a specified sum of money to the bearer, in which there is no drawee. Import thereof. No scope for applying the rules of acceptance prescribed for bills of exchange, because the acceptance requirement conflicts with the nature of a promissory note. - The legislature did not require, in the Commercial Code, mention of the cause of the obligation among the particulars that must be included in a promissory note. - The form of an endorsement transferring ownership in a bill of exchange, which applies to a promissory note. The legislature confined itself therein to requiring a single particular, namely the endorser's signature, without any other particulars. - Endorsement of a bill of exchange. The rule is that it transfers ownership unless it contains any statement conveying the meaning of agency, in which case it is an endorsement for collection. - Endorsement of a promissory note. Effect. Transfer of the right evidenced therein to the endorsee, free and clear of all defences. Condition thereof. That he be in good faith. - Good faith is presumed. The debtor must prove the contrary. - Bad faith in the endorsement of a promissory note. Its meaning. - Cheque:-