Kuwait Court of Cassation principle number 1009

A sale with a right of redemption is the seller's reservation, upon sale, of the right to recover the property sold in return for repayment of the price and expenses. Its implication. The contract is regarded as a loan secured by a possessory pledge and is subject to all provisions governing possessory pledges, including the nullity of an agreement to acquire ownership of the immovable property sold, for the seller's protection. - The judgment's characterization of the contract as a loan secured by a possessory pledge, based on what it inferred from its clauses and the clauses of the lease drawn up between the same parties concerning the same immovable property that is the subject of the sale contract, and that the female appellant had not repaid the price and expenses within the period specified in the leasing agreement, namely one year. Its making repayment of the price a condition for the nullity of the sale of the immovable property, contrary to the meaning of Article 508 of the Civil Code, which did not impose that condition, the implication being that nullity in this case attaches to the contract from its inception merely upon the seller's reservation of his right to recover the property sold in return for repayment of the price to the purchaser, and that this nullity is neither lifted nor extinguished upon the sale so that it becomes valid pursuant to this provision. Its ruling, on that basis, dismissing the action. A violation of the law and an error in its application requiring its cassation.