Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 280

State of Kuwait · Civil Matters — Volume 11 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

Nullity of a contract. Its effect: its non-existence from the time of its conclusion and the elimination of every effect of its performance. Its consequence: restoring everything to its original state and each contracting party recovering 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 oblige him to render equivalent performance. The basis thereof. - Assessment of compensation guided by the rights that would have been due to the impoverished party as a result of the void contract. A matter of merits, provided it is reasonable. - The court of first instance’s dismissal 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.
Arabic original
بطلان العقد. أثره: انعدامه من وقت إبرامه وزوال كل أثر لتنفيذه. مقتضاه: إعادة كل شيء إلى أصله واسترداد كل متعاقد ما أعطاه. إن استحال على أحد المتعاقدين رد ما أخذه أو أفاد به نتيجة تنفيذ العقد الباطل جاز للقاضي أن يلُزمه بأداء معادل. أساس ذلك. - تقدير التعويض استرشاداً بما كان مستحقاً للطرف المفتقر من حقوق نتيجة العقد الباطل. موضوعي ما دام سائغاً. - رفض محكمة أول درجة المطالبة بقيمة الحصة المشتراة في الشركة لبطلان الاتفاق على شرائها لا يحول دون المطالبة أمام محكمة الاستئناف بتعويض يعادل ما عاد على المشترين من جراء إفادتهم من تلك الحصة.
Original Arabic judgment citations

(الطعنان ٩٧٥، ٩٨٠/٢٠٠٣ تجاري جلسة ٩/١٠/٢٠٠٤ مج القسم الخامس - المجلد الثاني ص ٤١٣)

Source: Court of Cassation legal principles collection — Civil Matters — Volume 11 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 64. PDF pages: 64.

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