Kuwait Court of Cassation principle number 811

Assigning a legal characterization to papers and documents. Within the authority of the trial court. Its subjection in this respect to the supervision of the Court of Cassation. - 150 - Commercial - 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 relationship between the beneficiary and the drawee until the latter complies with the order and undertakes to pay the value of the bill of exchange when its maturity date falls due, by signing his acceptance of such 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. The implication of this. There is no scope for applying the acceptance rules prescribed for a bill of exchange, because the acceptance requirement conflicts with the nature of a promissory note. - The cause of the obligation. The general rule is that it need not be stated, since its existence and lawfulness are presumed until evidence to the contrary is established. - The legislature did not require, in the Commercial Code, that the cause of the obligation be stated among the particulars that must be included in a promissory note. - The form of an endorsement transferring title to a bill of exchange, which applies to a promissory note. The legislature limited the requirement therein to stating a single particular, namely the endorser’s signature, without any other particulars. - Endorsement of a bill of exchange. The general rule is that it transfers title unless it includes any statement conveying the meaning of agency, in which case it is an endorsement by way of agency. - Endorsement of a promissory note. Its effect. Transfer of the right embodied therein to the endorsee, free and clear of all defences. Its condition. 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.