Kuwait Court of Cassation principle number 2747

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 deemed a loan secured by a possessory pledge, and all provisions governing possessory pledges apply to it, including invalidity of the agreement to acquire ownership of the sold real property, for the seller’s protection. - The judgment’s characterization of the contract as a loan secured by a possessory pledge, as inferred from its terms and the terms of the lease drawn up between the same parties over the same real property that is the subject of the sale contract, and that the female appellant did not repay the price and expenses within the period specified in the leasing agreement, namely 1 year. And its making repayment of the price a condition for invalidity of the sale of the real property, contrary to the meaning of Article 508 of the Civil Code, which did not impose that condition, meaning that invalidity in this case attaches to the contract from its inception merely upon the seller reserving his right to recover the property sold in return for repayment of the price to the buyer, and that this invalidity is not lifted or removed upon 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. The registered contract: