Kuwait Court of Cassation principle number 2994

Sale with a right of redemption. A sale in which the seller reserves the right to recover the thing sold from the purchaser in return for repayment of the price. The legislature adopted the practice followed before issuance of the Civil Code of treating the contract as a loan secured by a possessory pledge and applying the provisions of possessory pledge to it without observing the procedures imposed by law for the seller's protection. - The judgment's conclusion that the disputed contract of sale is a loan secured by a possessory pledge, deeming the agreement therein for the appellant to acquire ownership of the real property upon repayment of the price void, on reasonable grounds. No defect. - 584 - Sale