Kuwait Court of Cassation principle number 3363

Law No. 35 of 1978 concerning real estate leases. What falls outside its scope of application. - Interpreting and construing contracts, ascertaining the true relationship between the parties and their intention in the contract, and the extent to which it contains essential terms uncommon in ordinary leases. Within the authority of the court of fact whenever it bases its ruling on sound reasons. - The mere fact that the owner leases to others or that the lessee or operator sublets. Does not constitute speculation, even at a rental value exceeding that contracted with the owner. A lease intended for speculation in pursuit of profit is considered commercial merchandise. A lease covering several premises so that the lessee may lease each to others with the intention of achieving material profit. His lessees are the original lessees. Their contracts are effective against the owner although he has not contracted with them. The reason therefor. The purpose of the lessee’s contract is to enable him to speculate, so he is not legally considered a lessee. - Judgments rendered on appeal in disputes arising from application of the Lease Law. They may not be challenged by cassation. - 661 - Lease