Kuwait Court of Cassation principle number 2827

A sale with a right of redemption is the seller's reservation, at the time of sale, of the right to recover the property sold in return for repayment of the price and expenses. Its import. Treating the contract as a loan secured by a possessory pledge, to which all provisions governing possessory pledges apply, including the invalidity of an agreement to acquire ownership of the real estate sold, for the seller's protection. - The judgment's characterization of the contract as a loan secured by a possessory pledge, on the basis of what it inferred from its clauses and the clauses of the lease executed between the same parties concerning the same real estate 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, and its making repayment of the price a condition for invalidity of the sale of - 524 - Obligation the real estate, contrary to the meaning of Article 508 Civil Code, which did not impose that condition, the consequence being that invalidity 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 invalidity is not lifted or removed at the time of 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.