Kuwait's Commercial Code (Law No. 68 of 1980): Key Concepts for Businesses

Civil versus commercial rules

Kuwaiti law distinguishes between civil transactions (governed by the Civil Code, Law No. 67 of 1980) and commercial transactions (governed by the Commercial Code). The classification matters because commercial rules can differ on proof, interest, and procedure.

When a dispute arises, one of the first legal questions is which regime applies. That classification depends on the nature of the activity and the parties, and it can change the outcome.

Written contracts and record-keeping

Commercial relationships should be documented in writing: the contract, invoices, correspondence, and accounting records. In commercial litigation, the party with the better-documented file usually starts from a stronger position.

Commercial obligations and breach

When a party fails to perform a commercial obligation, the affected party may claim performance or compensation according to the applicable rules. The contract's own clauses — penalty clauses, termination clauses, and dispute-resolution clauses — are examined first, so draft them carefully.

Resolving commercial disputes

Commercial disputes in Kuwait are brought before the competent courts, and many contracts also provide for arbitration. The right forum and procedure depend on the contract and the subject matter; choosing the wrong path wastes time and can weaken your position.

Get advice early

This overview is general information, not legal advice. Commercial outcomes turn on the exact contract wording and facts, so have significant contracts and disputes reviewed by a lawyer licensed in Kuwait.

Frequently asked questions