Kuwait Court of Cassation principle number 2444

A sale with a right of redemption is the seller's reservation, at the time of sale, of the right to recover the property 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 the nullity of an agreement to acquire ownership of the 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 terms and the terms of the lease drawn up between the same parties concerning the same property subject to the sale contract, and that the appellant had not repaid the price and expenses within the period specified in the leasing agreement, namely 1 year. Its making repayment of the price a condition for the nullity of the property sale, contrary to the meaning of Article 508 of the Civil Code, which does not stipulate that condition, with the consequence that nullity in this case attaches to the contract from its inception merely upon the seller's reservation of his right to recover the property sold in return for repayment of the price to the purchaser, and this nullity is neither lifted nor removed at the sale so as to render it valid pursuant to this provision. Its consequent ruling dismissing the action. Contravention of the law and an error in its application requiring its cassation. - Lease contract:-