Kuwait Court of Cassation principle number 1776
State of Kuwait · Civil Matters — Volume 10 · Ministry of Justice — Court of Cassation — Technical Office
English translation of the principle
Payment of earnest money upon conclusion of the contract. Its implication. Granting the contracting parties the option to withdraw from the contract. Withdrawal by one contracting party from the contract. Its effect. - Entitlement to the amount of the earnest money by the contracting party against whom withdrawal occurred. It is not compensation for damage but consideration for the other party's exercise of the option to withdraw. - A party contracting with earnest money who withdraws from the contract. Does not breach an obligation but exercises an established right. The reason: lawful permissibility is incompatible with liability. Articles 74, 75, 77/1 of the Civil Code. - Ascertaining the contracting parties' intention from the circumstances and facts of the action. Within the authority of the trial judge. Example concerning withdrawal from a sale contract. Proof of the contract:
Arabic original
دفع العربون وقت إبرام العقد. مفاده. منح المتعاقدين خيار الرجوع عن العقد. عدول أحد المتعاقدين عن العقد. أثره. - استحقاق قيمة العربون للمتعاقد الذي حصل ضده العدول. لا يُعد تعويضاً عن الضرر ولكن مقابل استعمال غريمه خيار العدول. - المتعاقد بالعربون حال عدوله عن العقد. لا يخل بالتزام وإنما يستعمل حقاً ثابتاً له. علة ذلك: أن الجواز الشرعي ينافي الضمان. المواد ٧٤، ٧٥، ٧٧/١ مدني. - استظهار نية العاقدين من ظروف الدعوى ووقائعها. من سلطة قاضي الموضوع. مثال في عدول عن عقد بيع. إثبات العقد:Original Arabic judgment citations
(الطعن ١٨٧/٢٠٠٨ تجاري جلسة ٣١/١/٢٠١٠ مجلة القضاء والقانون - س ٣٨ ج ١ ص ١٠٧)
Source: Court of Cassation legal principles collection — Civil Matters — Volume 10 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 347. PDF pages: 347.
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