Kuwait Court of Cassation principle number 4011

Considering a contract to be for a fixed term. Condition therefor. The future event certain to occur by which the contract ends must be precisely defined so as to eliminate uncertainty. Conclusion of a contract for a specified term with agreement therein that it is renewable for similar terms without specifying the number of renewals. Consequence thereof. It is considered from its inception an indefinite-term contract. Rationale therefor. - The contracting parties’ agreement that its term is one year and that it renews automatically for another similar term or terms unless one party notifies the other, one month before expiry of the original or renewed contractual term, of his wish not to renew. It is considered from its inception an indefinite-term contract. Rationale therefor. Failure to define the future event by which the contract ends in a manner eliminating uncertainty, because the parties omitted to specify the number of renewals. Consequence thereof. The respondent is not entitled to claim compensation for the appellant company’s termination of the contract concluded between them. Basis thereof. The challenged judgment’s departure from this view, treating that contract as a fixed-term employment contract and consequently holding the respondent entitled to compensation for the remainder of the contractual term. Defective reasoning leading it into an error in applying the law requiring its cassation. - 795 - Labour