Kuwait Court of Cassation principle number 278

Nullity of the contract. Its effect. Its annihilation from the time of its conclusion, so that every effect of its performance disappears if it has been performed. The consequence thereof. Restoring the thing to its original state and each contracting party recovering what he gave, if possible. Impossibility of recovery and benefit from performance of the contract. Its implication. The judge may require the beneficiary to render equivalent performance. - The obligation to render equivalent performance. Its source is the rule of unjust enrichment. Article 262 Civil Code. The implication thereof. Proof of fault on the part of the contracting party obliged to make restitution or render equivalent performance is not required. The reason therefor. What the judge does - 63 - Obligation is merely to give effect to the consequence which the law attaches to the mere nullity of the contract. The difference between a claim based on equivalent performance and a claim for compensation because of the contract’s nullity through the fault of one of the contracting parties. The effect thereof. - The possibility of restoring the contracting parties to the situation existing at the time of contracting. Its necessary consequence. There is no room for equivalent performance.