Kuwait Court of Cassation principle number 232

The administrative authority has the power to impose contractual sanctions upon its contracting party if he fails to perform his obligations, whether by wholly refraining from performance or by delaying it. The administrative judiciary may exercise oversight over the administrative authority's use of the aforementioned power. Such oversight is not confined to ascertaining the legality of the sanction. In some cases, it extends to reviewing its appropriateness to the default attributed to the contracting party. - The terms of the contract. Their failure to attain a degree of clarity that removes all ambiguity or obscurity in their indication of the intended meaning. When interpreting it, the common intention of the contracting parties must be sought, without stopping at the literal meaning of its terms, guided by the nature of the transaction, prevailing customs, and the honesty and trust that should exist between the contracting parties. The court may draw guidance from this rule contained in the Civil Code in relation to administrative contracts when ascertaining the contracting parties' common intention. There is no conflict in applying it. - 69 - Administrative