Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 94

State of Kuwait · Commercial and Labour — Volume 9 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

The general rule is that agreement on default interest exceeding its prescribed maximum is impermissible. Contravention of this. Its effect. Nullity. This pertains to public policy.
Arabic original
الأصل أنه لا يجوز الاتفاق على فوائد تأخيرية تزيد على الحد الأقصى المقرر لها. مخالفة ذلك. أثره. البطلان. تعلق ذلك بالنظام العام.
Original Arabic judgment citations

(الطعنان ٥٩، ٦٣/٨٤ تجاري جلسة ٩/١/١٩٨٥ مج القسم الأول - المجلد الثاني ص ٧٠٥)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 27. PDF pages: 27.

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