Kuwait Court of Cassation principle number 2979

Novation of an obligation. It is a contract in which the parties agree to extinguish a previous obligation and substitute another, new obligation differing from it in its subject matter or source or parties, its constituent elements, attributes, defences and securities. - The intention to novate is not presumed. It must be express in the contract or clearly inferred from the circumstances, leaving no room for doubt. Inferring it. A matter of fact. - The contract concluded between the worker and the employer after the employment relationship ended. Its inclusion of a settlement of the worker's entitlements to an end-of-service gratuity and making them a lump sum. A new obligation differing from the original obligation in its nature and source. Claiming it. Subject to the ordinary procedures for bringing an action. The challenged judgment's ruling that the action was inadmissible because it had not been preceded by an application to the Labour Department. Vitiates it and requires its cassation. Licence renewal contract: