Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 2934

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

English translation of the principle

The general rule regarding earnest money is that it is consideration for exercising the option to withdraw from the contract, unless it is agreed that it was paid to confirm the contract's finality. The effect of withdrawal. The contracting party who did not withdraw is entitled to the earnest money. It is not compensation. The contracting parties' intention is the criterion for giving earnest money its legal characterisation. Ascertaining that intention. Within the authority of the trial judge.
Arabic original
الأصل في العربون أنه مقابل استعمال خيار العدول عن العقد ما لم يتفق على أنه دفع لتأكيد البتات فيه أثر العدول. استحقاق المتعاقد الذي لم يحصل العدول من جانبه العربون. ليس تعويضاً. نية المتعاقدين هي المناط في إعطاء العربون وصفة القانوني. استظهار هذه النية. من سلطة قاضي الموضوع.
Original Arabic judgment citations

(الطعن ٣١/٨٤ تجاري جلسة ٧/١١/١٩٨٤ مج القسم الأول - المجلد الثاني ص ٢٧٢)

Source: Court of Cassation legal principles collection — Civil Matters — Volume 11 — Ministry of Justice — Court of Cassation — Technical Office. PDF pages: 572.

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