Kuwait Court of Cassation principle number 2995

A sale with a right of redemption is the seller's retention, upon sale, of the right to recover the thing sold in return for repayment of the price and expenses. Its import. The contract is deemed a loan secured by a possessory pledge, and all provisions governing possessory pledges apply to it, including nullity of the agreement to acquire ownership of the real property sold, in protection of the seller. - The judgment's characterization of the contract as a loan secured by a possessory pledge, inferred from its clauses and those of the lease concluded between the same parties over the same property constituting the subject of the sale contract, and that the appellant had not repaid the price and expenses within the period specified in the leasing agreement, namely one year. Its making repayment of the price a condition for the nullity of the sale of the property, contrary to the meaning of Article 508 of the Civil Code, which did not impose that condition, meaning that nullity in this case attaches to the contract from its inception merely upon the seller's retention of his right to recover the thing sold in return for repayment of the price to the purchaser, and that this nullity is not lifted or removed upon sale so that it becomes valid pursuant to this provision. Its dismissal of the action on that basis. A violation of the law and an error in its application requiring its cassation.