Kuwait Court of Cassation principle number 2592

An express rescission clause. A prior agreement between the parties that the contract shall be rescinded automatically upon nonperformance of the obligations arising therefrom. Its effect. Depriving the judge of his discretion regarding rescission. The prerequisite therefor. The court’s verification of the conditions for rescission and the necessity of giving it effect. Lapse of the creditor’s option to seek rescission through acceptance of performance in a manner inconsistent with the intention to rescind the contract, or where the creditor’s fault caused the debtor’s nonperformance of his obligation, or where the debtor’s refusal to perform is lawful based on the defense of nonperformance when its conditions are met. Its effect. The judge disregards the contractual rescission clause. The creditor retains the right to invoke judicial rescission. - Ascertaining the existence of an express rescission clause and its waiver. Entrusted to the judge of merits. The condition therefor.