Kuwait Court of Cassation principle number 3631

The principle concerning contracts is that they are binding. The implication thereof: neither contracting party may unilaterally rescind the contract without the other's consent. Permissibility of agreeing to undo the contract and mutually rescind it. Article 217, Civil Code. - Mutual rescission in contracting. Its effect. Extinction of the contract as regards the contracting parties for the past and the future. It is considered a new contract as regards third parties. Its implication. This effect is not effective against third parties except from the date mutual rescission occurs. Article 218, Civil Code. - Establishment of mutual rescission by the original creditor and the respondent bank of the assignment of the right, and notification thereof to the appellant. Its implication. The debt forming the subject matter of the action remains owed by the appellant and is not transferred to the State because it was not included in the notarized acknowledgment. The challenged judgment's conclusion on that basis that the appellant's request to invalidate the notification to him of cancellation of the assignment, on the ground of discharge from the debt, is unfounded. Does not vitiate it.