Kuwait Court of Cassation principle number 3186

The seller’s reservation, upon sale, of the right to recover the thing sold in return for repayment of the price and expenses. Its meaning. It is a sale with a right of redemption. The contract is deemed a loan secured by a possessory pledge and is subject to all provisions governing possessory pledges, including the invalidity of an agreement to acquire ownership of the immovable property sold, in protection of the seller. - The judgment’s characterization of the contract as a loan secured by a possessory pledge, as inferred from its clauses and the clauses of the lease drawn up between the same parties concerning the same immovable property that is the subject of the sale contract, and that the female appellant did not repay the price and expenses within the period specified in the leasing agreement, namely one year, and its making repayment of the price a condition for the invalidity of the sale of the immovable property, contrary to the meaning of Article 508 of the Civil Code, which did not stipulate this, the implication being that invalidity in this case attaches to the contract from its inception merely upon the seller’s reservation of his right to recover the thing sold in return for repayment of the price to - 623 - Loan the purchaser, and this invalidity is not lifted or removed upon sale so that it becomes valid pursuant to this provision. Its ruling, on that basis, dismissing the action. A violation of the law and an error in its application requiring its cassation.