Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 2713

State of Kuwait · Commercial and Labour — Volume 9 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

Nullity of the contract. Its effect: its nonexistence from the time of its conclusion and the disappearance of every effect of its performance. Its consequence: restoring everything to its original state and each contracting party recovering what he gave. If it is impossible for either contracting party to return what he took or benefited from as a result of performance of the void contract, the judge may require him to render an equivalent. The basis thereof. - The court of first instance's rejection of a claim for the value of the share purchased in the company because the agreement to purchase it was void does not preclude claiming before the Court of Appeal compensation equivalent to the benefit accruing to the purchasers from their enjoyment of that share.
Arabic original
بطلان العقد. أثره: انعدامه من وقت إبرامه وزوال كل أثر لتنفيذه. مقتضاه: إعادة كل شئ إلى أصله واسترداد كل متعاقد ما أعطاه. إن استحال على أحد المتعاقدين رد ما أخذه أو افاد به نتيجة تنفيذ العقد الباطل جاز للقاضي أن يلزمه بأداء معادل. أساس ذلك. - رفض محكمة أو درجة المطالبة بقيمة الحصة المشتراة في الشركة لبطلان الاتفاق على شرائها لا يحول دون المطالبة أمام محكمة الاستئناف بتعويض يعادل ما عاد على المشترين من جراء إفادتهم من تلك الحصة.
Original Arabic judgment citations

(الطعنان ٩٧٥، ٩٨٠/٢٠٠٣ تجاري جلسة ٩/١٠/٢٠٠٤ مج القسم الخامس - المجلد الثامن ص ٧٠١)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 464. PDF pages: 464.

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