Kuwait Court of Cassation principle number 520

Law No. 35 of 1978 concerning real property leases. What falls outside its scope of application. - Interpretation and construction of contracts, ascertainment of the true relationship between the parties and their intent under the contract, and the extent to which it contains essential conditions unusual in an ordinary lease. Within the authority of the court of fact where it bases its judgment on reasonable grounds. - The mere fact that the owner leases to a third party or that the tenant or exploiter subleases. Does not constitute speculation, even if at a rent exceeding that agreed with the owner. A lease intended for speculation in pursuit of profit is regarded as merchandise for trade. A lease covering several premises so that the tenant may lease each to third parties with the intention of achieving material profit. Those renting from him are the original - 113 - Law tenants. Their contracts are effective against the owner although he is not a contracting party with them. Rationale. The purpose of the tenant's contract is to enable him to speculate, and he is therefore not legally regarded as a tenant. - Judgments rendered on appeal in disputes arising from application of the Lease Law. They may not be challenged by way of cassation.