Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 377

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

English translation of the principle

An agreement to conceal an instalment sale contract under the guise of a lease contract, describing the price as rent, and upon its full payment the contract converts into a sale contract. The legislature’s disregard of this and its adoption of the contracting parties’ true intention, and the application of the provisions governing instalment sales to the contract. An example concerning a contract for the sale of a car in the form of a lease contract.
Arabic original
الاتفاق على إخفاء عقد البيع بالتقسيط تحت ستار عقد الإيجار ووصف الثمن بأنه أجرة وبتمام الوفاء بها ينقلب العقد إلى عقد بيع. عدم اعتداد المشرع بذلك وأخذه بحقيقة قصد المتعاقدين وسريان أحكام البيع بالتقسيط على العقد. مثال بشأن عقد بيع سيارة في صورة عقد إيجار.
Original Arabic judgment citations

(الطعن ٧٢٨/٢٠٠٣ تجاري جلسة ١١/١٢/٢٠٠٤ مج القسم الخامس - المجلد الثالث ص ٤٢٠)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 76. PDF pages: 76.

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