Kuwait Court of Cassation principle number 3089

Nullity of the contract. Its effect: its non-existence from the time of its conclusion and elimination of every effect of its performance. Its consequence: restoration of everything to its original state and recovery by each contracting party of what he gave. If either contracting party cannot return what he received or benefited from as a result of performance of the void contract, the judge may order him to provide an equivalent performance. Basis thereof. - Assessment of compensation guided by the rights that would have been due to the impoverished party under the void contract. A matter for the court of merits, provided it is reasonable. - The court of first instance's rejection of the claim for the value of the share purchased in the company because the agreement to purchase it was void. Does not preclude a claim before the Court of Appeal for compensation equivalent to what accrued to the purchasers through their benefit from that share.