Kuwait Court of Cassation principle number 1853

Novation of an obligation. It is a contract in which the parties agree to extinguish a prior obligation and substitute another, new obligation differing from it in its subject matter, source, or parties, and its elements, characteristics, defenses, and securities. - The intention to novate is not presumed. It must be express in the contract or clearly inferred from the circumstances so as to leave no room for doubt. Inferring it. A matter of fact. - The contract concluded between the worker and the employer after termination of the employment relationship. Its inclusion of a settlement of the worker’s end-of-service gratuity entitlements and making them a lump sum. A new obligation differing from the original obligation in its nature and source. A claim for it. Is subject to the ordinary procedures for filing an action. The challenged judgment’s ruling that the action is inadmissible because it was not preceded by an application to the Labor Department. Vitiates it and requires its cassation. - 354 - Obligation