Kuwait Court of Cassation principle number 3478

The obligation of anyone enriched at another’s expense without lawful cause to pay the impoverished person, within the limits of his enrichment, what eliminates that person’s loss. Art., 262, Civil Code. - Cause is the legal source conferring the enrichment and may be a contract or a judgment. If the enrichment lacks lawful cause, the impoverished person is entitled to recourse against the enriched person for the lesser of the two values: the value by which the debtor was enriched or the value by which the creditor was impoverished. - Invalidity of the contract. Its effect: its nonexistence from the time of its conclusion and the elimination of every effect of its performance. Its implication: restoration of everything to its original state and recovery by each contracting party of what he gave. If it is impossible for either contracting party to return what he received or benefited from as a result of performing the invalid contract, the judge may require him to render equivalent performance. The basis for this. - Assessment of compensation guided by the rights that would have been due to the impoverished party under the invalid contract. A matter for the trial court, provided it is reasonable. - A claim for equivalent performance made for the first time on appeal. Permissible. Its condition: the original claim remains unchanged. Art. 144/3, Code of Procedure. - 587 - Commercial - The court of first instance’s rejection of a claim for the value of the interest purchased in the company because the agreement to purchase it was invalid does not preclude claiming before the Court of Appeal compensation equivalent to the benefit accruing to the purchasers from that interest. - Types of obligations:- - Obligation to achieve an objective (obligation of result):-