Kuwait Court of Cassation principle number 3172

Sale with a right of redemption. It is a sale in which the seller reserves the right to recover the thing sold from the purchaser in exchange for repayment of the price. The legislature adopted the practice prevailing before the enactment of the Civil Code of treating the contract as a loan secured by a possessory pledge and applying the provisions on possessory pledges to it without observing the procedures imposed by law for the seller’s protection. - 619 - Loan - The judgment’s conclusion that the disputed sale contract is a loan secured by a possessory pledge, treating the agreement therein for the appellant to acquire ownership of the real property upon repayment of the price as void, on cogent grounds. No defect.