Commercial Code
State of Kuwait · 525 stored articles
Article index
Search statutory textsArticles 1 – 10071
- Article 1The provisions of this Law shall apply to merchants and to all commercial acts performed by any person, even if not a merchant. Commerce in General Introduction General…
- Article 2Subject to the provisions of Article 96, the rules of commercial custom shall apply to commercial matters for which no provision is made in this Law or other laws…
- Article 3Commercial acts are acts performed by a person with the intention of speculation for profit, even if that person is not a merchant.
- Article 4The following acts, in particular, shall be deemed commercial acts: 1 - Purchasing goods and other tangible and intangible movables with the intention of selling them at…
- Article 5Acts relating to the following matters shall be deemed commercial acts, irrespective of the capacity or intention of the person performing them: 1 - Banking…
- Article 6All acts relating to maritime navigation shall be deemed commercial acts, and in particular: 1 - Building, selling, purchasing, letting, hiring and repairing ships. 2 -…
- Article 7All activities relating to air navigation shall be deemed commercial activities, in particular: 1- The construction, sale, purchase, letting, hiring, and repair of…
- Article 8Acts connected with or facilitating the commercial transactions mentioned in the preceding articles, and all acts performed by a merchant for the needs of his trade,…
- Article 9A merchant's contracts and obligations are presumed to be commercial unless it is established that these contracts and obligations relate to civil transactions.
- Article 101 - An artist's creation of an artistic work personally or by employing workers, and his sale thereof, shall not constitute a commercial act. 2 - Likewise, an author's…
- Article 111 - A farmer's sale of produce from land he owns or cultivates, even after processing that produce by the means he uses in his agricultural industry, shall not be…
- Article 131 - Anyone who engages in commercial transactions in their own name, possesses the requisite legal capacity, and adopts such transactions as their occupation shall be a…
- Article 141 - The status of trader shall be presumed in anyone who assumes it by announcing it in newspapers, bulletins or other media. This presumption may be rebutted by proving…
- Article 15A person who carries out an incidental commercial transaction without making commerce his occupation shall not be deemed a merchant. Nevertheless, the commercial…
- Article 161 - Government ministries, the municipality, associations, and clubs shall not be considered traders, but commercial transactions undertaken by these bodies shall be…
- Article 17Individuals who practise a simple craft or a small trade in which they rely on their labour to obtain small profits to secure their livelihood more than they rely on…
- Article 18Every Kuwaiti who has attained twenty-one years of age and is not subject to a legal impediment relating to his person or to the type of commercial transaction he…
- Article 191- If a minor has assets in a business, the court may order the liquidation of his assets and their withdrawal from that business or their continuation therein, as the…
- Article 201- If serious grounds arise giving cause to fear mismanagement by the minor's representative, the court may withdraw the authorization provided for in the preceding…
- Article 211 - Women's capacity to engage in trade is governed by the law of the State whose nationality they possess. 2 - A foreign wife who engages in trade professionally is…
- Article 231 - A non-Kuwaiti may not engage in commerce in Kuwait unless he has a Kuwaiti partner or partners. The capital held by Kuwaitis in the joint commercial enterprise must…
- Article 24As an exception to the provisions of Article 23, item 1, a foreign company may establish a branch in Kuwait and conduct its business therein without the need for a local…
- Article 25The following persons may not engage in commerce: First: Any merchant declared bankrupt during the first year of engaging in commerce, unless rehabilitated. Second: Any…
- Article 26A merchant shall keep the commercial books required by the nature and importance of his business, in a manner ensuring an accurate statement of his financial position…
- Article 27A trader must keep at least the following two books: 1 - The original journal. 2 - The inventory book. In addition to individuals engaged in a simple craft or small…
- Article 28All financial transactions carried out by the merchant, as well as the expenses he has incurred on himself and his family, shall be entered in the original journal. Such…
- Article 291 - The details of the goods held by the trader at the end of his financial year shall be entered in the inventory book, or an aggregate statement thereof if their…
- Article 301 - Commercial books must be free of any blank space, writing in the margins, erasure or interlineation in what is recorded therein. (2) Amended pursuant to Law No. 1 of…
- Article 31A merchant must retain a true copy of all correspondence and telegrams he sends for his commercial business, and must likewise retain all correspondence, telegrams,…
- Article 32The merchant or his heirs shall retain the original journal and inventory book for ten years commencing from the date of their closure. They shall also preserve the…
- Article 33When hearing the action, the court may, of its own motion or at the request of either litigant, order the production of commercial books and papers to inspect only the…
- Article 341 - A commercial establishment is the trader's place of business and the rights connected with that place. 2 - The commercial establishment comprises a group of tangible…
- Article 35The rights of the owner of the business in the various elements comprising the business are determined by the special provisions relating thereto; if there is no special…
- Article 361- The sale of a business establishment shall be effected only by an official instrument. 2- The sale contract shall specify separately the price of the goods, tangible…
- Article 371- The contract for the sale of a commercial establishment shall be publicized by entry in the Commercial Register. 2- Registration ensures preservation of the seller's…
- Article 381 - A seller bringing an action for rescission shall serve notice on creditors having registered entries against the business establishment at their elected domiciles…
- Article 39If the sale of the business establishment by public auction is requested, the applicant shall notify the previous sellers thereof at their elected domiciles indicated in…
- Article 40A business may be pledged. If the property covered by the pledge is not precisely specified, it shall cover only the trade name, leasehold right, customer connections,…
- Article 411 - A pledge shall be effected only by an official instrument. 2 - The pledge contract must contain a declaration by the debtor as to whether the seller has a privilege…
- Article 421 - A contract pledging a commercial establishment shall be publicized by its registration in the Commercial Register. 2 - Registration shall secure preservation of the…
- Article 43The pledgor is responsible for maintaining the pledged business in good condition.
- Article 441 - If the owner of the business does not pay the price or its remainder to the seller, or the debt on its due date Law Index 1261 Home Page Commerce Law Decree-Law No.…
- Article 45The seller and the secured creditors shall have, over the sums arising from insurance, if their prior becoming due is established, the same rights and privileges that…
- Article 46The lessor of the premises in which the pledged furniture and machinery used in operating the business are situated may not exercise his privilege for more than two…
- Article 471 - The trade name shall consist of the merchant's name and surname. It must be clearly distinguishable from previously registered names. 2 - The trade name may include…
- Article 481 - The trade name shall be entered in the Commercial Register in accordance with the law. 2 - After registration, no other trader may use that name in the type of trade…
- Article 49The merchant shall conduct his commercial transactions and sign his papers relating to those transactions under his trade name. He shall display that name at the…
- Article 50The trade name may not be disposed of independently of the disposition of the commercial establishment. But if the owner of the commercial establishment disposes of his…
- Article 511 - A person to whom ownership of a business is not transferred may not use his predecessor's trade name unless that name has devolved upon him or the predecessor has…
- Article 521 - A person who acquires a trade name as an adjunct to a commercial establishment shall succeed his predecessor in the obligations and rights arising under that name.…
- Article 53A person to whom a commercial establishment is transferred without its trade name shall not be liable for the obligations of his predecessor, unless there is an…
- Article 541 - Companies' trade names shall be in accordance with the legal provisions governing them. 2 - A company may retain its original trade name without amendment if a new…
- Article 551 - If a trade name is used by someone other than its owner, or its owner uses it in a manner contrary to the law, interested parties may request that its use be…
- Article 56A trader may not resort to deception and fraud in marketing his goods, nor may he publish false statements liable to harm the interests of another trader competing with…
- Article 57A merchant may not disseminate matters contrary to the truth concerning the origin or characteristics of his goods or the importance of his trade, nor announce, contrary…
- Article 58A trader may not entice the workers or employees of another trader to assist him in wresting away that trader's customers, or to leave that trader's service, or to enter…
- Article 59If a trader gives an employee or a former worker a certificate of good conduct contrary to the truth, and that certificate misleads another trader acting in good faith…
- Article 60Anyone whose occupation is to supply commercial houses with information about the circumstances of merchants, and who provides statements contrary to the truth…
- Article 81(( Repealed )) From Articles 82 to 85 (( Repealed ))
- Article 86A trade description is any indication relating directly or indirectly to the following: (1) Articles 60 bis and 60 bis A - B - C - D - E were repealed pursuant to Law…
- Article 87The trade description must conform to the truth in all respects, whether placed on the products themselves, on premises or warehouses, on their headings, on wrappers,…
- Article 881- The seller's name or address may not be placed on products imported from a country other than that in which the sale takes place unless accompanied by an accurate…
- Article 89A manufacturer may not use the name of the locality in which he has a principal factory on products manufactured for his account in another locality unless that name is…
- Article 901 - No mention may be made of prizes, medals, diplomas, or honorary degrees of any kind except in relation to the products to which these distinctions apply, and in…
- Article 92Shall be punished by imprisonment and a fine not exceeding six hundred dinars, or by either of these two penalties: The phrase (and shall be punished by imprisonment for…
- Article 95(( Repealed )) Book Two Commercial Obligations and Contracts
- Article 96Except as provided in this Book, the provisions prescribed in the Civil Code shall apply to commercial obligations and contracts. Part One: Commercial Obligations
- Article 97Persons jointly obligated under a commercial debt shall be jointly and severally liable for that debt unless the law or agreement provides otherwise.
- Article 98A guarantee shall be commercial if the guarantor guarantees a debt deemed commercial in relation to the debtor.
- Article 99In a commercial guarantee, the guarantors shall be jointly and severally liable among themselves and jointly and severally liable with the debtor. The creditor has the…
- Article 100If a merchant performs acts or services for the account of another relating to his commercial activity, he shall be deemed to have performed them for consideration…
Articles 101 – 200100
- Article 101A loan shall be commercial if its purpose is to expend the borrowed sums on commercial acts.
- Article 1021 - The creditor has the right to collect interest on a commercial loan unless otherwise agreed. If the interest rate is not specified in the contract, the interest due…
- Article 103Interest shall be paid at the end of the year if the term of the loan is one year or more, and on the date the debt falls due if the term is less than one year, unless…
- Article 104If the term of the loan is specified, the creditor shall not be compelled to accept payment of the debt before maturity unless the debtor pays the interest accruing for…
- Article 105If a specified time is fixed for performance of the contract and expires without the debtor having performed, the creditor may not thereafter be compelled to accept…
- Article 106If one contracting party reserves the right to rescind the contract in return for payment of a specified amount, his performance of the obligations imposed upon him by…
- Article 107Performance of commercial obligations may be demanded only during customary business hours.
- Article 108Putting the debtor in default or notifying him in commercial matters shall be by formal notice or by registered letter with acknowledgment of receipt. In urgent cases,…
- Article 109A judge may not grant the debtor under a commercial obligation a period for its discharge or payment by installments except in the cases provided for in this Law or…
- Article 110If the subject matter of a commercial obligation is a sum of money and its amount is known at the time the Index of the Law 1267 Home Page Commercial Law Decree-Law No.…
- Article 1111 - The contracting parties may agree on another interest rate, provided that this rate does not exceed the rates announced by the Central Bank, which are determined by…
- Article 112Entitlement to interest for delay, whether statutory or contractual, shall not require the creditor to prove that he suffered harm as a result of such delay.
- Article 113Interest for delay in payment of commercial debts shall become payable as soon as they fall due, unless the law or agreement provides otherwise.
- Article 1141 - The creditor may claim supplementary compensation in addition to default interest without the need to prove that the damage exceeding such interest was caused by the…
- Article 115Interest may not be charged on accrued interest, and in no case may the total interest collected by the creditor exceed the principal, all in the circumstances provided…
- Article 116A person holding a receipt of discharge shall be competent to receive payment where the person making payment is unaware of the reasons preventing payment to the holder.
- Article 117The presence of the debt instrument in the debtor’s possession constitutes a presumption that the debtor is discharged from the debt, until the contrary is proved.
- Article 118In commercial matters, merchants' obligations to one another relating to their commercial business shall become time-barred upon the lapse of ten years from the date on…
- Article 119Neither the communication of current prices to multiple persons nor the offering of property for sale by sending a list of the items, their prices and their pictures…
- Article 120The sale of commercial property that does not exist at the time of the contract and that can be prepared and made available at the time of delivery is valid.
- Article 121A thing may be sold where the contracting parties contemplated, at the time of the contract, the possibility of its destruction. If destruction occurs, the purchaser…
- Article 122a If it is agreed that the buyer may specify the form of the sale, its size or other detailed characteristics, the buyer must make this specification within a reasonable…
- Article 123If it is agreed that the price is the market price, then, in case of doubt, the price must be the market price at the place and time at which the thing sold must be…
- Article 124If the contracting parties have not specified a price for the sale, this shall not render the sale void where it is apparent from the circumstances that the contracting…
- Article 125A third party may be authorized to determine the price. If that party does not determine the price for any reason, the buyer shall be bound by the market price on the…
- Article 1261 - If the price is determined on the basis of weight, the net weight shall govern unless Law Index 1269 Home Page Commercial Law Decree-Law No. 68 of 1980 Promulgating…
- Article 1271 - Mandatory pricing laws and decisions shall not apply to sales concluded before they take effect, even if the price falls due on a later date. 2 - As for sales…
- Article 128If it is agreed that delivery shall take place upon the arrival of the goods sold at the carrier, the risk of loss shall remain with the seller until the goods sold are…
- Article 1291 - If the seller, at the buyer's request, dispatches the thing sold to a destination other than that specified for its delivery, the risk of loss shall be borne by the…
- Article 1301 - If no time for delivery is specified, delivery must take place immediately upon conclusion of the contract, unless the nature of the thing sold or custom requires…
- Article 1311 - If the seller fails to deliver at the time fixed therefor, the contract shall be deemed rescinded without need for formal notice, unless the buyer notifies the…
- Article 1321 - If the goods delivered differ from the goods agreed upon in quantity or kind, the buyer may not seek rescission unless the difference is so substantial as to render…
- Article 1331 - If the price is not paid at the agreed time, the seller may, after formally notifying the buyer, demand from him the difference between the agreed price and the…
- Article 134The buyer may pay the price before the due date unless otherwise agreed. The agreement or custom shall determine what is to be deducted from the price in consideration…
- Article 1351 - If the buyer refuses to take delivery of the goods sold, the seller may deposit them with a custodian and sell them by public auction after the expiry of a…
- Article 136Sale by installments: If the purchaser fails to pay any installment of the agreed price, rescission of the sale may not be ordered if it appears that he has performed…
- Article 1371 - If the seller retains ownership of the movable sold until all instalments of the price have been paid, the buyer shall acquire that ownership upon payment of the…
- Article 138The buyer may not dispose of the thing sold before paying all the instalments in full unless the seller agrees to this in writing. Any disposition made by the buyer in…
- Article 139Where the buyer disposes of the thing sold before paying all instalments of the price and without the seller's consent, the seller may demand that the buyer pay the…
- Article 140The provisions governing instalment sales set forth in the preceding Articles shall apply even if the contracting parties call the sale a lease. Second: Maritime Sales 1…
- Article 141A CIF sale is a sale of goods exported by sea to a specified place for a lump-sum consideration comprising the price of the goods, insurance thereon, and freight by ship.
- Article 142The seller shall conclude the contract of carriage—at his own expense—on the usual terms, for the carriage of the goods to the agreed port of destination and by the…
- Article 1431 - The seller shall load the goods, at his own expense, on board the vessel at the port of shipment on the date agreed upon in the contract of sale, or within a…
- Article 144The seller shall bear any damage that may befall the goods until the moment when, during loading, they pass the ship's rail, and this risk shall thereafter pass to the…
- Article 1451 - The seller shall conclude, at the seller's expense, a marine insurance contract for the goods with a reputable insurer, covering the risks of the voyage. If the…
- Article 1461 - The seller shall send the buyer, without delay, a clean, negotiable bill of lading relating to the goods sold. It must contain evidence that the goods were loaded on…
- Article 1471 - The buyer shall not be obliged to accept the documents sent to him by the seller if they do not conform to the conditions stipulated in the sale contract. The buyer…
- Article 148If the vessel on which the goods sold were shipped arrives before the documents arrive, or if the documents arrive incomplete, the seller must, immediately upon being…
- Article 149If the vessel arrives, the buyer shall take delivery of the goods after inspecting them and verifying their conformity with what is stated in the documents. The buyer…
- Article 150If the goods prove to differ from what is stated in the documents, and the discrepancy does not exceed the extent permitted by custom, the buyer shall be obliged to…
- Article 151An FOB sale is a sale in which the goods are delivered at the port of shipment on board the vessel designated by the purchaser to transport them.
- Article 152The buyer shall conclude a contract for the carriage of the goods, pay the freight, and notify the seller in due time of the name of the vessel selected for carriage,…
- Article 1531 - The seller shall pack the goods and load them aboard the vessel designated by the buyer. This shall be on the date or within the period concerned for shipment. 2 -…
- Article 154The seller shall, at his own expense, obtain the export permit and undertake all procedures relating to shipment of the goods.
- Article 155If the buyer requests the provision of a certificate indicating the origin of the goods, the seller shall be obliged to obtain it and provide it to him.
- Article 156The seller shall provide all assistance to enable the buyer to obtain the bill of lading and other documents issued in the country of shipment which the buyer may…
- Article 157The seller shall bear all expenses necessary for loading the goods. He shall also bear the risk of any damage that may be sustained by the goods until the moment when,…
- Article 158If the purchaser does not notify the seller of the vessel's name at the appropriate time, or reserves the right to specify a period for taking delivery of the goods or…
- Article 159If the vessel's arrival is delayed until after the expiry of the period specified for shipment, or if it is unable to load the goods within that period, the buyer shall…
- Article 160A contract containing terms that place on the seller the risk of loss after shipment of the goods, make performance of the contract contingent upon the vessel's safe…
- Article 1611 - A contract of carriage is an agreement under which the carrier undertakes to transport a thing or a person to a specified destination in return for specified…
- Article 1621 - Every action arising from a contract for the carriage of things, a contract for the carriage of persons, or a transport commission agency contract shall be…
- Article 163Gross. 1 - The transport document shall be drawn up in two copies, one signed by the carrier and delivered to the correspondent, and the other signed by the consignor…
- Article 1641 - The transport document may be drawn up in the name of a specified person, to his order, or to bearer. 2 - The document shall be transferred in accordance with the…
- Article 165If no transport document is drawn up, the carrier shall, at the consignor's request, give him a receipt signed by the carrier acknowledging delivery of the thing…
- Article 1661 - The consignor shall deliver the thing to the carrier at the carrier's domicile unless delivery at another place is agreed upon. If carriage requires the carrier to…
- Article 1671 - The consignor shall pay the carriage charges and other expenses due to the carrier unless it is agreed that the consignee shall bear them. In this case, the…
- Article 1681 - While the thing is in the carrier's possession, the consignor may order the carrier to return it to him or direct it to a person other than the consignee, and shall…
- Article 1691 - The owner of the thing may dispose of it by sale or other dispositions while it is in the carrier’s possession pursuant to the transport document. 2 - The owner…
- Article 170The consignee shall bear the obligations arising from the contract of carriage if he accepts them expressly or implicitly. In particular, the consignee's demand for…
- Article 1711 - The carrier shall be obliged to load the thing and stow it in the means of transport, unless otherwise agreed. 2 - If it is agreed that the consignor shall load or…
- Article 1721- The carrier shall take the agreed route. If no particular route has been agreed, the carrier shall take the shortest route. 2- Nevertheless, the carrier may change…
- Article 1731- The carrier shall guarantee the safety of the thing during performance of the contract of carriage and shall be liable for its total loss or partial loss, for damage…
- Article 174The carrier shall not be liable for the loss of money, securities, jewellery or other valuables entrusted to the carrier for carriage, except to the extent of the…
- Article 175The carrier shall be liable for the acts of the persons whom he employs in performing his obligations arising under the contract of carriage.
- Article 1761 - If the thing is lost or damaged without its value being stated in the transport document, compensation shall be assessed on the basis of the actual value of what was…
- Article 177If damage to the thing, its partial destruction or its delayed arrival results in its no longer being fit for its intended purpose. And the carrier's liability is…
- Article 1781 - Receipt of the thing without reservation shall extinguish the right of recourse against the carrier on account of damage, partial loss or delay in arrival, unless…
- Article 1791- If several carriers successively perform a single contract of carriage, the first carrier shall be liable to the consignor and consignee for the entire carriage, and…
- Article 1801 - The carrier may not disclaim liability for the loss of or damage to the thing or delay in its delivery except by proving force majeure, an inherent defect in the…
- Article 1811 - Any clause providing for exemption of the carrier from liability for total or partial loss of the thing or for damage to it shall be void. Likewise, any clause…
- Article 1821 - Except in cases of intentional fault and gross fault by the carrier or its servants, the carrier may: A - Limit its liability for loss or damage, provided that the…
- Article 183If the thing is transported in the custody of the consignor or consignee, the carrier shall not be liable for its destruction or damage unless fault on his part or on…
- Article 1841 - The carrier shall unload the thing upon its arrival unless otherwise agreed. 2 - The consignee may proceed directly against the carrier, demanding delivery or…
- Article 1851 - If delivery is not required at the consignee's premises, the carrier shall notify him of the arrival of the thing and the time at which he can take delivery of it. 2…
- Article 1861 - If carriage stops during its performance, or the consignee does not appear to take delivery of the thing at the time specified by the carrier, or appears and refuses…
- Article 1871 – The carrier may retain the thing to recover the carriage charge, expenses and other sums due to it by reason of the carriage. 2 - The carrier shall have a…
- Article 188The carrier shall be obliged to carry the passenger and his baggage that he is permitted to retain to the destination at the time agreed upon, stated in the transport…
- Article 1891 - The carrier guarantees passengers' safety during performance of the contract of carriage and shall be liable for bodily or material damage sustained by the passenger…
- Article 190The carrier shall be liable for the acts of the persons whom he employs in performing his obligations arising from the contract of carriage.
- Article 1911 - Any clause providing for the carrier's total or partial exemption from liability for bodily injuries sustained by the passenger shall be void. 2 - Any clause that…
- Article 1921 - The carrier shall not be liable for the loss of baggage retained by the passenger or for damage to it unless the passenger proves fault on the part of the carrier or…
- Article 1931 - If the passenger dies during performance of the contract of carriage, the carrier shall be obliged to take the measures necessary to preserve his luggage until it is…
- Article 194The passenger shall pay the fare at the time agreed upon, stated in the transport regulations, or prescribed by custom. He is liable for the full fare even if he decides…
- Article 1951- The carrier may retain the passenger's luggage as security for the fare and for food or other things supplied to him during performance of the contract of carriage.…
- Article 196The passenger shall follow the carrier's instructions relating to carriage. Section Three: Commission Agency for Carriage
- Article 1971 - A transport commission agency is a contract under which the agent undertakes to contract in his own name or in the name of his principal with a carrier for the…
- Article 1981 - The commission agent for carriage shall safeguard the interests of his principal and implement his instructions, particularly those concerning the choice of carrier.…
- Article 1991 - The transport commission agent guarantees the safety of the thing or passenger. 2 - In the carriage of things, he shall be liable, from the time he receives the…
- Article 2001 - Any clause providing for the total or partial exemption of the transport commission agent from bodily injury sustained by the passenger shall be void. 2 - Any clause…
Articles 201 – 300100
- Article 2011 - The principal or passenger shall have the right of direct recourse against the carrier to claim compensation for damage arising from non-performance of the contract…
- Article 202The original commission agent guarantees the commission agent whom he has engaged as an intermediary, unless the consignor designated the intermediary agent in his…
- Article 203If the commission agent pays the freight charges to the carrier, he shall be subrogated to the carrier's rights.
- Article 204Except for the provisions stipulated above, the provisions governing the commission agency contract shall apply to the commission agent for carriage. Section Four…
- Article 2051 - Air carriage means the carriage of persons, baggage or goods by aircraft for remuneration. 2 - The term ( baggage ( means things that the passenger may carry with…
- Article 206The provisions of this Chapter shall apply to air carriage, subject to the special provisions set out in the following articles.
- Article 207The air transport document must include a statement indicating that the transport is subject to the limited liability provisions stipulated in Article 214; otherwise,…
- Article 208The air carrier shall be liable for damage occurring in the event of a passenger's death, wounding, or any other bodily injury if the accident causing the damage…
- Article 2091 - The air carrier shall be liable for damage occurring in the event of destruction, loss, or damage to baggage or goods if the accident that caused the damage occurred…
- Article 210The carrier shall be liable for damage resulting from delay in the arrival of the passenger, baggage or goods.
- Article 211The air carrier shall be exempt from liability if he proves that he and his servants took all necessary measures to avoid the damage or that it was impossible for them…
- Article 212The air carrier shall be exempt from liability if it proves that the entire damage arose through the fault of the injured party. The court may reduce the carrier's…
- Article 213The air carrier shall not be liable for small personal items that remain in the passenger's custody during travel unless the passenger proves fault on the part of the…
- Article 2141 - In the carriage of persons, the compensation awarded against the air carrier may not exceed six thousand dinars for each passenger unless the two expressly agree to…
- Article 215The air carrier may not invoke the limitation of liability provided for in the preceding Article if it is proved that the damage arose from an act or omission on the…
- Article 2161 - If an action for compensation is brought against one of the carrier's servants, he may invoke the limitation of liability provided for in Article 214 if it is…
- Article 217Any clause providing for the air carrier's exemption from liability or limiting it to less than the limits stipulated in Article 214 shall be void. 2 - Nevertheless,…
- Article 218The consignee's receipt of baggage or goods without reservation shall constitute a presumption that he received them in good condition and in conformity with the…
- Article 2191 - In the event of damage to baggage or goods, the consignee shall address a protest to the carrier immediately upon discovering the damage and, at the latest, within…
- Article 220The right to bring a liability action against the air carrier shall lapse upon the passage of two years from the day the aircraft reaches its destination, from the day…
- Article 2211 - In the case of gratuitous carriage, the air carrier shall not be liable unless fault on his part or on the part of one of his subordinates is established. In this…
- Article 222The air carrier shall be liable within the limits prescribed in Article 214, whatever the capacity of the parties to the liability action and whatever their number or…
- Article 223A pledge shall be commercial with respect to all persons concerned therein if it is constituted over movable property as security for a debt considered commercial with…
- Article 2241 - The pledge shall not be effective against third parties unless possession of the pledged thing is transferred to the pledgee or to another person designated by the…
- Article 2251 Rights may be pledged. Rights evidenced by registered instruments shall be pledged by a written assignment stating that it is by way of security, entered in the books…
- Article 226The pledge may be proved, as between the contracting parties and against third parties, by all means of proof.
- Article 2271 - If a pledge is created over fungible property, it shall remain in force even if the pledged thing is replaced by another thing of its kind. 2 - If the pledged thing…
- Article 228The pledgee creditor shall, if requested to do so, deliver to the debtor a receipt stating the nature of the pledged thing, its kind, quantity, weight and other…
- Article 2291 - The pledgee creditor shall be obliged to take the measures necessary to preserve the pledged thing, and if that thing is a commercial paper, he must, upon maturity,…
- Article 230The pledgee creditor shall exercise, for the pledgor's account, all rights relating to the pledged thing and collect its value, profits, interest, and other amounts…
- Article 231If the debtor fails to pay the debt secured by the pledge when due, the pledgee may, after three days have elapsed from the date of formal notice to the debtor to pay,…
- Article 2321 - The order issued by the president of the court to sell the pledged thing may not be executed until five days have elapsed from the date of its notification to the…
- Article 2331 - The sale shall be conducted at the time and place designated by the President of the Court of First Instance, and by public auction unless the President orders…
- Article 234If the pledged thing is liable to perish or deteriorate, or its possession entails exorbitant expenses, and the pledgor does not wish to provide another thing in its…
- Article 235If the market price of the pledged thing falls so that it becomes insufficient to secure the debt, the creditor may set the pledgor a reasonable period to supplement the…
- Article 236If the pledged thing is an instrument whose value has not been paid in full, the pledgor, when called upon to pay the unpaid portion, shall provide the pledgee creditor…
- Article 2371 - Any agreement concluded at the time the pledge is created or thereafter, granting the pledgee creditor, in the event of non-payment of the debt when due, the right…
- Article 238Deposit in public warehouses is a contract under which the warehousekeeper undertakes to receive and preserve goods for the account of the depositor or whoever acquires…
- Article 239A public warehouse having the right to issue negotiable instruments representing deposited goods may not be established or operated except under a licence from the…
- Article 2401 - The competent minister shall issue regulations governing public warehouses. 2 - Each public warehouse shall establish its own regulations governing its activity in…
- Article 2411 - The warehouse keeper may not engage, in any capacity, whether for his own account or for the account of others, in a commercial activity involving goods of the kind…
- Article 242Public warehouses may grant loans secured by a pledge of the goods stored with them and deal in the pledge warrants representing those goods.
- Article 2431 - The depositor is obliged to provide the public warehouse with accurate particulars concerning the nature, type and value of the goods. 2 - The depositor has the…
- Article 2441 - The warehouse keeper shall be liable for the safekeeping and maintenance of the deposited goods up to their value as assessed by the depositor. 2 - The warehouse…
- Article 2451 - The depositor shall receive a warehouse receipt stating his name, occupation, domicile, the type, nature, and quantity of the goods, and other particulars necessary…
- Article 2461 - If the goods for which the warehouse receipt and pledge warrant have been delivered are fungible things, they may be replaced with goods of the same nature, kind and…
- Article 2471 - The warehouse receipt and pledge instrument may be issued in the depositor's name or to his order. - If the warehouse receipt and pledge instrument are to the…
- Article 2481- Endorsement of the pledge warrant separately from the storage receipt shall create a pledge over the goods in favor of the endorsee. 2- Endorsement of the storage…
- Article 2491 - The endorsement of the warehouse receipt and the pledge warrant must be dated. 2 - If the pledge warrant is endorsed separately from the warehouse receipt, the…
- Article 250The holder of a storage receipt separate from the pledge warrant may pay the debt secured by that warrant even before maturity. If the holder of the debt instrument is…
- Article 251If the secured debt is not paid when due, the holder of the pledge instrument separately from the warehouse receipt may request the sale of the pledged goods by…
- Article 2521 - The pledgee shall recover his entitlement from the price of the goods with priority over all creditors after deduction of the following sums: A - Taxes and fees due…
- Article 2531 - The holder of a pledge warrant may not have recourse against the debtor or endorsers until execution has been levied against the pledged goods and their…
- Article 254If an accident befalls the goods, the holder of the warehouse receipt or pledge warrant shall have, over the insurance amount payable upon the occurrence of that…
- Article 2551 - A person who has lost a warehouse receipt may petition the President of the Court of First Instance for an order that he be furnished with a copy of the lost…
- Article 2561- If the depositor does not recover the goods upon expiry of the deposit contract, the warehouse keeper may, after serving notice upon him, request their sale in…
- Article 2571 - The guarantor provided in the event of loss of a storage receipt shall be discharged upon the lapse of five years without any demand for recovery of the goods being…
- Article 2581 - Anyone who establishes or operates a public warehouse contrary to the provisions of Article 239 shall be punished by imprisonment for a term not exceeding one year…
- Article 259The warehousekeeper and every manager, employee, or worker therein shall be punished with the penalty provided for in the preceding Article if he discloses the secret of…
- Article 260A commercial agency, even if it contains an unrestricted authorization, does not authorize non-commercial acts except by express agreement.
- Article 2611 - A commercial agency shall be remunerated unless otherwise agreed. 2 - If this remuneration is not specified in the agreement, it shall be determined according to the…
- Article 2621 - The agent may not contravene his principal's orders; otherwise, he shall be liable for the resulting damage. 2 - However, if the agent ascertains that carrying out…
- Article 2631 - The agent shall be liable for damage sustained by things he holds for his principal's account unless such damage arises from causes of force majeure, unusual…
- Article 2641 - If the agent becomes aware of damage sustained during transit by the things he holds for the principal's account, he shall take urgent measures to preserve them. -…
- Article 2651 - The agent shall provide the principal with the necessary information on his progress in performing the agency and submit an account thereof to him. Home Page 1291…
- Article 2661 - The agent shall have a preferential lien over the goods and other things that the principal sends to the agent, deposits with the agent, or delivers to the agent,…
- Article 2671 - The agent shall have no preferential right over goods or things sent to him, deposited with him or delivered to him for safekeeping unless they remain in his…
- Article 2681 - The agent's preferential right shall take precedence over all other preferential rights except judicial expenses and amounts due to the Government. 2 - Enforcement…
- Article 269If the principal has no known domicile in Kuwait, his agent's domicile shall be deemed his domicile, and he may be sued and served with official documents there in…
- Article 270The laws specific thereto shall apply to the regulation of engagement in commercial agency activities. Home Page 1292 Law Index Commercial Law Decree-Law No. 68 of 1980…
- Article 271Contract agency is a contract under which a person undertakes, on a continuing basis and within a specified area of activity, to solicit and negotiate the conclusion of…
- Article 272The contract agent shall perform his agency work and manage his commercial activity independently, and shall alone bear the expenses necessary for managing his activity.
- Article 273The principal may engage more than one contract agent in the same area and for the same branch of activity. 2 - A contract agent may not act as agent for more than one…
- Article 274The contract agency agreement must be evidenced in writing and must specify, in particular, the limits of the agency, the agent's remuneration, the area of his activity,…
- Article 275If the contract stipulates that the contract agent establish display buildings, warehouses for goods, or maintenance or repair facilities, the contract term may not be…
- Article 2761 - A contract agent may not collect the principal's receivables unless the principal has granted him that right. In this case, the agent may not grant a reduction or a…
- Article 2771 1 - The principal shall pay the agreed remuneration to the agent. 2 - This remuneration may be a percentage of the value of the transaction. This percentage shall be…
- Article 2781 - The contract agent shall be entitled to remuneration for transactions that are concluded or whose non-conclusion is attributable to an act of the principal. 2 - He…
- Article 279The principal must provide the agent with all information necessary to perform the agency, and supply him, in particular—with specifications of the goods, samples,…
- Article 2801 - The contract agent shall safeguard the principal's rights and may take all conservatory measures necessary to safeguard those rights. He shall provide his principal…
- Article 2811 - A contract agency is concluded in the common interest of both parties. The principal may not terminate the agreement without fault on the part of the agent;…
- Article 2821 - If the contract is for a fixed term and the principal decides not to renew it upon expiry, he shall pay the agent fair compensation assessed by the judge, even if an…
- Article 2831 - The action for compensation referred to in the preceding Article shall be time-barred upon the lapse of ninety days from the termination of the contract. 2 - All…
- Article 284If the principal replaces the contract agent with a new agent, the new agent shall be jointly and severally liable with the principal for payment of the compensation…
- Article 285As an exception to the rules of jurisdiction contained in the Law of Procedure, jurisdiction to hear all disputes arising from a contract agency agreement shall lie with…
- Article 286A distribution contract under which a trader undertakes to promote and distribute the products of an industrial or commercial establishment in a specified area, provided…
- Article 2871- Commission agency is a contract under which the agent undertakes to perform a legal act in his own name for the principal's account in return for remuneration. 2- The…
- Article 2881 - If the commission agent sells at less than the price specified by the principal or purchases at more than it, the principal, if he wishes to reject the transaction,…
- Article 289If the commission agent contracts on terms more favourable than those specified by the principal, the agent shall render an account to the principal.
- Article 2901 - If the commission agent for sale grants the purchaser time to pay the price or allows him to pay it in instalments without the principal's permission, the principal…
- Article 291If the principal's instructions require sale at a deferred price, and the commission agent swallows at an immediately payable price, the principal may not demand payment…
- Article 2921 - A commission agent may not disclose the principal's name unless the principal authorizes him to do so. 2 - A commission agent is not obliged to disclose to the…
- Article 293The commission agent may not make himself the other party to the transaction unless the principal authorizes him to do so. In this case, the commission agent shall not…
- Article 2941 - The commission agent is directly liable to the third party with whom he contracted, and that third party is likewise directly liable to the commission agent. 2 - The…
- Article 2951 - If the commission agent for sale becomes bankrupt before collecting the price from the buyer, the principal may demand directly that the buyer pay the price to him.…
- Article 2961 - The commission agent shall not be liable for performance of the obligations incumbent upon the person contracting with him, unless he expressly assumes such…
- Article 297A person entrusted by a trader with carrying out an act of his trade, while travelling or at his place of business or at any other place, and bound to him by an…
- Article 2981- The merchant shall be liable for the transactions carried out and contracts concluded by his representative within the limits of the authority conferred upon him by…
- Article 2991 - If the limits of the authority conferred on the commercial representative are not specified, the authority shall be deemed general, encompassing all transactions…
- Article 300The commercial representative shall carry out the commercial acts entrusted to him in the name of the merchant who authorized him. When signing, he shall place beside…
Articles 301 – 400100
- Article 301The commercial representative may represent the merchant in actions arising from the transactions he has conducted.
- Article 302A commercial representative may not conduct any commercial transaction for his own account or for the account of a third party without obtaining express consent from the…
- Article 303A travelling commercial representative may not collect payment for goods he has not sold, or reduce or defer any part of their prices. He may only accept third parties'…
- Article 304A merchant may authorize some of his employees to sell by retail or wholesale in his store. Those employees may—where collection of the price is not assigned to a…
- Article 305The commercial representative is jointly and severally liable with the merchant for compliance with the legal provisions relating to unfair competition. Chapter Six…
- Article 306Brokerage is a contract under which the broker undertakes, for a person, to seek another party to conclude a specified contract and to mediate its conclusion, in return…
- Article 307If the broker's remuneration is not determined by law or agreement, it shall be determined according to custom. If there is no custom, the judge shall assess it…
- Article 3081 - A broker shall be entitled to his remuneration only if his mediation leads to conclusion of the contract. 2 - Remuneration shall become due upon conclusion of the…
- Article 309The court may reduce the broker's remuneration if it is disproportionate to the services that Index of the Law 1297 Home Page Commercial Law Decree-Law No. 68 of 1980…
- Article 3101 - If the broker is authorized by both parties to the contract, he shall be entitled to remuneration from each of them. 2 - Each of the contracting parties shall be…
- Article 311A broker may not recover the expenses he incurred in performing the work entrusted to him unless this has been agreed. In that case, the expenses shall be payable even…
- Article 312A broker may not claim remuneration or recover expenses if he has acted to the detriment of the contracting party in the interest of the other contracting party who did…
- Article 313The broker, even if authorized by only one of the parties to the transaction, shall present it honestly to both of them and acquaint them with all the circumstances…
- Article 314The broker may not make himself a second party to the contract whose conclusion he mediates unless the contract authorizes him to do so; in this case, the broker shall…
- Article 315A broker may not act as an intermediary for persons reputed to be unsuitable or whom he knows to lack legal capacity.
- Article 316The broker through whom a security of the securities commonly traded is sold shall be responsible for the authenticity of the seller's signature.
- Article 3171 - A broker through whom goods are sold by sample shall preserve those samples until the day of delivery, until the purchaser accepts the goods without reservation, or…
- Article 318The broker shall record in his books all transactions concluded through his efforts and their essential particulars, retain the documents relating thereto, and provide…
- Article 3191 - If the broker appoints another person to perform the work entrusted to him without being authorized Law Index 1298 Home Page Commercial Law Decree-Law No. 68 of 1980…
- Article 320If several brokers are authorized under a single contract, they shall be jointly and severally liable for the work entrusted to them, unless they are authorized to act…
- Article 321If several persons authorize a single broker to undertake joint work, they shall be jointly and severally liable towards him for the performance of this authorization,…
- Article 322Brokerage in commodity and securities markets shall be subject to the provisions of the laws and regulations specific thereto. Section Two Commercial Exchanges
- Article 323The stock exchange shall be deemed a legal person having capacity to dispose of and administer its assets and the right to litigate.
- Article 3241 - No exchange for traders may be opened except under a licence from the competent minister. 2 - Every exchange opened without a licence shall be closed by…
- Article 3251 - A decree shall be issued regulating the business of the exchange and shall include, in particular, the following: 1 - Administration of the exchange and the conduct…
- Article 326There shall be a government representative or representatives at the exchange to monitor the implementation of the regulations
- Article 327Forward transactions concluded on the exchange in accordance with its regulations, whether relating to goods or quoted securities, shall be considered lawful and valid…
- Article 328Stock exchange transactions shall not be validly concluded unless effected through brokers whose names are entered on a list drawn up by the Stock Exchange Committee.…
- Article 329A money deposit is a contract vesting in the bank ownership of the deposited money and the right to dispose of it in accordance with its professional activity, subject…
- Article 3301 - The bank shall open an account for the depositor to record transactions conducted between them, or transactions conducted between the bank and third parties for the…
- Article 3311- A money deposit contract shall not confer upon the depositor the right to withdraw from the bank amounts exceeding those deposited therein. 2- If the bank carries out…
- Article 3321 - A deposit of money shall be repaid on demand unless otherwise agreed, and the depositor shall have the right at any time to dispose of the balance or part thereof. 2…
- Article 333The bank shall send an account statement to the depositor at least once each year unless custom or agreement provides otherwise. The statement shall include a copy of…
- Article 334If the bank issues a savings deposit book, it must be in the name of the person in whose favour the book is issued, and payments and withdrawals must be recorded…
- Article 335Deposits and withdrawals shall be made at the bank premises where the account was opened, unless otherwise agreed.
- Article 336If the depositor has multiple accounts with one bank or branches of one bank, each account shall be considered independent of the other unless otherwise agreed.
- Article 337The bank may open a joint account for two or more persons in equal shares among them unless otherwise agreed, subject to the following provisions: 1 - The joint account…
- Article 338The bank may not use securities deposited with it or exercise the rights arising from them except in the depositor's interest, unless otherwise agreed.
- Article 3391 - In safeguarding the deposited securities, the bank shall exercise the care of a remunerated depositary, and any agreement exempting the bank from exercising this…
- Article 3401 - The bank shall collect the interest, dividends and value of the security, and every other amount payable by reason thereof, unless otherwise agreed. Index of the Law…
- Article 341The bank must notify the depositor of every matter or right relating to the security that requires obtaining his approval or depends on his choice. If the depositor's…
- Article 3421- The bank shall return the deposited securities as soon as the depositor requests it to do so, allowing for the time required to prepare the securities for return. 2-…
- Article 343Return shall be made to the depositor of the security, to his agent under a special power of attorney, or to his successor, even if the security contains an indication…
- Article 344If an action claiming entitlement to the deposited securities is brought, the bank shall notify the depositor directly and refrain from returning the securities to him…
- Article 345The lease of safe-deposit boxes is a contract under which the bank undertakes, for a fee, to place a specified safe-deposit box at the lessee's disposal for use for a…
- Article 346The bank shall be responsible for the safety, guarding, and fitness for use of the safe-deposit box, and may disclaim liability only by proving an extraneous cause.
- Article 3471- The bank must hand the lessee the key to the safe-deposit box, and the bank alone may retain a copy thereof. The key remains the bank's property and must be returned…
- Article 348The lessee may not sublet the safe-deposit box or any part thereof, or assign the lease to a third party, unless otherwise agreed.
- Article 3491 - If the safe-deposit box is leased to several lessees, each shall have the right to use it individually unless otherwise agreed. Home Page 1302 Law Index Commercial…
- Article 350The lessee may not place in the safe any things that threaten its safety or the safety of the place in which it is located.
- Article 351If the lessee does not pay the safe-deposit box rent after fifteen days have elapsed from his being served with a demand for payment, the contract shall be deemed…
- Article 3521 - If the contract term expires or it is deemed rescinded pursuant to the preceding Article, the bank shall recover the safe-deposit box after notifying the lessee to…
- Article 3532 - Attachment shall be effected by requiring the bank to state whether it leases a safe-deposit box to the person against whom attachment is levied. If it acknowledges…
- Article 354Bank transfer is an operation whereby the bank enters a specified amount on the debit side of the transfer originator's account pursuant to his written order, and on the…
- Article 355If a bank transfer is made between two or more branches of a bank or between two different banks, every dispute raised by a third party concerning the amount must be…
- Article 356A transfer order may relate to amounts already credited to the account of the person ordering the transfer or to amounts to be credited to that account within a period…
- Article 357It may be agreed that the beneficiary himself shall submit the transfer order to the bank instead of its being communicated to the bank by the person ordering the…
- Article 3581 - The beneficiary acquires ownership of the amount from the time it is entered on the credit side of his account, and the instructing party may revoke the transfer…
- Article 359The debt in discharge of which the transfer order was issued shall remain outstanding, together with its securities and accessories, until the amount is actually…
- Article 3601 - If the ordering party’s balance is insufficient, and the transfer order is addressed directly to the bank by the party ordering the transfer, the bank may refuse to…
- Article 361If several beneficiaries present themselves to the bank simultaneously and the value of the transfer orders they hold exceeds the ordering party's balance, they shall be…
- Article 362The distribution referred to in the preceding Article may be made only on the first working day following the day of presentation. The provisions of the second and third…
- Article 3631 - If the beneficiary is declared bankrupt, the instructing party may suspend execution of the transfer order even if the beneficiary received it personally. 2 - The…
- Article 3641 - The opening of a credit is a contract under which the bank places means of payment at the beneficiary’s disposal within the limits of a specified amount. 2 - The…
- Article 3651 - If the credit is opened for an indefinite period, the bank may cancel it at any time, provided that it notifies the beneficiary at least ten days before the date it…
- Article 366The bank may not cancel the credit before the expiry of the agreed period except in the event of the beneficiary's death, interdiction or cessation of payments—even if…
- Article 3671- A documentary credit is a contract under which the bank undertakes to open a credit at the request of one of its customers, the applicant for the credit, in favor of…
- Article 368The documents against which payment, acceptance or discount operations are to be performed must be precisely specified in the papers relating to the request to open a…
- Article 369The bank that opened the credit shall perform the terms of payment, acceptance and discounting agreed upon in the credit-opening contract if the documents conform to the…
- Article 3701 - A documentary credit may be irrevocable or revocable. 2 - The contract opening the credit shall expressly state its type; if this is not stated, the credit shall be…
- Article 371A revocable documentary credit shall not impose any obligation on the bank toward the beneficiary. The bank may at any time amend or cancel it on its own initiative or…
- Article 3721 - In the case of an irrevocable documentary credit, the bank’s obligation shall be definitive and direct towards the beneficiary and every holder of intention of the…
- Article 3731 - Every irrevocable documentary credit must include a final date for the validity of the credit and the presentation of documents for payment, acceptance or…
- Article 3741 - The bank must verify that the documents conform to the instructions of the applicant for opening the credit. 2 - If the bank rejects the documents, it must…
- Article 3751- The bank shall not be liable if the documents presented conform on their face to the instructions it received from the applicant. 2- Nor shall the bank bear any…
- Article 376A documentary credit may not be assigned or divided unless the bank that opened it is authorized by the applicant to pay it in whole or in part to one or several persons…
- Article 377If the person ordering the opening of the credit does not pay the bank the value of the shipping documents conforming to the terms of the opening of the credit within…
- Article 378Discounting is a contract under which the bank advances to the holder of a commercial paper or any other negotiable instrument that has not matured the value stated in…
- Article 3791- Interest shall be calculated on the basis of the time elapsing until the instrument's maturity date. 2- Commission shall be assessed on the basis of the instrument's…
- Article 380The beneficiary of the discount must repay to the bank the nominal value of the instrument that has not been paid.
- Article 3811 - The bank shall have, against the principal debtor under the instrument, the beneficiary of the discount and the other obligors, all rights arising from the…
- Article 382A letter of guarantee is an undertaking issued by a bank at the request of a customer of its own, the instructing party, to pay a specified or ascertainable amount to…
- Article 3831 - The bank may request the provision of security in return for issuing the letter of guarantee. 2 - The security may consist of an assignment by the applicant of his…
- Article 384The beneficiary may not assign to a third party his right arising from the letter of guarantee except with the bank's consent.
- Article 385The bank may not refuse payment to the beneficiary for a reason arising from the bank's relationship with the instructing party or the instructing party's relationship…
- Article 386The bank shall be discharged of liability towards the beneficiary if it does not receive a demand for payment from the beneficiary during the validity period of the…
- Article 387If the bank pays the beneficiary the amount agreed upon in the letter of guarantee, it shall be subrogated to the beneficiary's right of recourse against the applicant…
- Article 388A current account is a contract whereby two persons agree to enter in an account, by means of reciprocal and interrelated payments, debts arising from transactions…
- Article 389The current account may be overdrawn on the side of both parties, or overdrawn on the side of one party only. In the latter case, one party shall not be obliged to…
- Article 3901 - If the items of the current account include monetary debts denominated in different currencies or dissimilar things, the parties may agree to enter them in the…
- Article 3911 - Ownership of the money or property entered in the current account shall pass to the party who received it. 2 - Each party to the current account may dispose of his…
- Article 392The entry of a commercial instrument in the current account shall be valid provided that its value is not counted if it is not paid at maturity. In that case, it may be…
- Article 3931 - All debts arising from business relations conducted between the two parties to the account shall, by operation of law, be entered in the current account unless these…
- Article 3941 - If it is agreed to enter a debt secured by a contractual security in the current account, that security shall transfer to secure the account balance upon closure up…
- Article 395Debts owed to either party, upon entry in the current account, shall lose their particular characteristics and separate identity, and shall thereafter not be…
- Article 396Entering payments in the current account shall not extinguish the actions available to the two parties concerning the contracts and transactions from which those…
- Article 3971 - Payments into a current account shall not bear interest unless otherwise agreed. If the agreement does not specify the interest rate, it shall be calculated on the…
- Article 3981 - The entries in the current account as a whole shall be indivisible before the account is closed and the final balance is determined. Only the closing of the account…
- Article 3991 - If a period is specified for closing the account, it shall be closed upon its expiry, and it may be closed before the expiry of that period by agreement of the…
- Article 400Upon closure of the account, the debt represented by the balance shall be deemed immediately due, unless the parties have agreed otherwise or certain transactions…
Articles 401 – 500100
- Article 401The operative rules shall apply to the limitation of the debt represented by the balance and its interest. Statutory interest shall accrue on the debt represented by the…
- Article 402If a debt entered in the account is extinguished or its amount reduced for a reason arising after its entry in the account, its entry shall be cancelled or reduced and…
- Article 4031 - If the proceeds of discounting a commercial instrument are entered in the current account and the instrument's amount is not paid at maturity, the person who…
- Article 4041 - Actions for correction of the account owing to an error, omission or duplication in an entry, or other corrections, shall not be admissible after the lapse of six…
- Article 405The bill of exchange shall contain the following particulars: 1 - The words bill of exchange written in the body of the instrument and in the language in which it is…
- Article 406An instrument lacking any of the particulars mentioned in the preceding Article shall not be considered a bill of exchange except in the following cases: 1 - If the bill…
- Article 4071 - A bill of exchange may be drawn to the order of the drawer himself. 2 - It may be drawn on its drawer. 3 - It may be drawn for the account of another person.
- Article 4081 - If the amount of the bill of exchange is written both in words and in figures, the amount written in words shall prevail in the event of a discrepancy. -2- If the…
- Article 4091 - Interest on the amount stated in the bill of exchange may not be stipulated unless the bill of exchange is payable at sight or at a period after sight. 2 - The…
- Article 4101 - The capacity of a person obligated under a bill of exchange shall be determined by reference to his national law. -2- If a person lacks full capacity under his…
- Article 411The obligations of minors who are not merchants and of persons lacking legal capacity arising from their signatures on a bill of exchange as drawers, endorsers,…
- Article 412If the bill of exchange bears signatures of persons having capacity to incur obligations under it, or its signatures are forged, or signatures of fictitious persons, or…
- Article 4131 - Whoever signs a bill of exchange on behalf of another without authorization from him shall be personally liable under the bill of exchange. If he pays it, he shall…
- Article 4141 - The drawer of a bill of exchange guarantees its acceptance and payment. 2 - He may stipulate exemption from the guarantee of acceptance but not from the guarantee of…
- Article 4151 - A bill of exchange may be drawn in several identical parts. 2 - The number of each part must be placed in its text; otherwise, each part shall be deemed a separate…
- Article 4161 - Payment of a bill of exchange under one of its parts shall discharge liability, even if it is not stipulated therein that such payment invalidates the other parts.…
- Article 417A person who sends one of the parts of a bill of exchange for acceptance shall indicate on the other parts the name of the person in whose possession that part is held.…
- Article 4181 - The holder of a bill of exchange may make copies thereof. 2 - The copy must correspond exactly to the original bill of exchange, including the endorsements or any…
- Article 4191 - The name of the possessor of the original must be stated on the copy of the bill of exchange, and the latter must deliver the original to the lawful holder of the…
- Article 420If an alteration occurs in the text of the bill of exchange, signatories subsequent to that alteration shall be bound by what appears in the altered text, whereas prior…
- Article 4211 - Every bill of exchange, even if it does not expressly state that it is drawn to order, may be negotiated by endorsement. 2 - A bill of exchange in which its drawer…
- Article 4221 - The endorsement shall be written on the bill of exchange itself or on another sheet attached thereto and shall be signed by the endorser. 2 - An endorsement…
- Article 423The date of an endorsement may not be antedated; if this occurs, it shall constitute forgery.
- Article 424The name of the beneficiary need not be written in the endorsement, and the endorsement may also be limited to the endorser's signature (endorsement in blank). For the…
- Article 4251 - Without prejudice to the provision of Article 427, an endorsement may not be made subject to a condition, and every condition to which an endorsement is made subject…
- Article 426If the endorsement is in blank, the holder may: a - Fill in the blank by writing his name or the name of another person. b - Endorse the bill of exchange anew in blank…
- Article 4271 - The endorser guarantees acceptance and payment of the bill of exchange unless otherwise stipulated. 2 - He may prohibit its further endorsement, in which case he…
- Article 4281 - The possessor of a bill of exchange shall be considered its lawful holder whenever he establishes his entitlement thereto by an uninterrupted series of endorsements,…
- Article 4291 - Endorsement transfers all rights arising from the bill of exchange. 2 - Without prejudice to the provision of Article 411, a debtor against whom an action on a bill…
- Article 4301 - If the endorsement contains the expression - value for collection» or «value for receipt» or «agency or any other statement indicating agency, the holder may…
- Article 4311 - If the endorsement contains the expression (value as security» or «value in pledge or any other statement indicating a pledge, the holder may exercise all rights…
- Article 432The drawer of the bill of exchange, or the person for whose account the bill of exchange was drawn, must place with the drawee Law Index 1315 Home Page Commercial Law…
- Article 433Funds for payment shall be deemed to exist if, at the maturity of the bill of exchange, the drawee owes the drawer or the person ordering the drawing a specified sum of…
- Article 4341 - Acceptance of a bill of exchange constitutes a presumption that the acceptor holds funds for its payment. This presumption may not be rebutted in the relationship…
- Article 4351 - Ownership of the funds for payment shall pass by operation of law to successive holders of the bill of exchange. 2 - If the funds for payment are less than the…
- Article 4361 - The drawer shall, even if the protest is drawn up after the legally prescribed time limit, deliver to the holder of the bill of exchange the documents necessary to…
- Article 437If the drawer becomes bankrupt, even before the maturity date of the bill of exchange, its holder, to the exclusion of the drawer's other creditors, shall be entitled to…
- Article 4381 - If the drawee becomes bankrupt and the funds for payment constitute a debt owed by him, that debt shall form part of the assets of the bankruptcy estate. 2 -…
- Article 4391 - If several bills of exchange are drawn against a single cover for payment whose value is insufficient to pay all of them, the chronological order of their dates of…
- Article 440The holder of a bill of exchange, or any possessor thereof, may, until maturity, present it to the drawee at his domicile for acceptance.
- Article 4411 - The drawer of a bill of exchange may stipulate that it must be presented for acceptance within a specified time or without specifying a time. 2 - He may stipulate…
- Article 4421 - A bill of exchange payable at a specified period after sight must be presented for acceptance within one year from its date. - The drawer may shorten or extend this…
- Article 443The drawee may request that the bill of exchange be presented for acceptance a second time on the day following the first presentation. Interested parties' allegation…
- Article 4441 - The holder of a bill of exchange presented for acceptance is not obliged to surrender it to the drawee. 2 - Acceptance shall be written on the bill of exchange…
- Article 4451 - Acceptance must be unconditional. Nevertheless, the drawee may limit it to part of the amount of the bill of exchange. 2 - Any alteration of the particulars of the…
- Article 4461 - If the drawee strikes out his acceptance written on the bill of exchange before returning it, the acceptance struck out shall be deemed a refusal. The striking out…
- Article 4471 - If the drawer specifies in the bill of exchange a place of payment other than the drawee's domicile without specifying the person at whose premises payment must be…
- Article 4481 - If the drawee accepts the bill of exchange, he becomes obliged to pay its value at maturity. 2 - In the event of non-payment, the holder, even if he is the drawer…
- Article 4491 - Payment of all or part of the amount of a bill of exchange may be guaranteed by an aval guarantor. 2 - This guarantee may be given by any person, even if he is one…
- Article 4501 - The aval shall be written on the bill of exchange itself or on the sheet attached thereto. 2 - This guarantee shall be expressed by the wording “accepted as an aval”…
- Article 4511 - The guarantor by aval shall be liable in the same manner as the person guaranteed. 2 - The obligation of the guarantor by aval shall be valid even if the obligation…
- Article 4521 - An aval may be given on a separate document stating the place where that aval was given. 2 - A guarantor by aval on a separate document shall be liable only towards…
- Article 4531 - The maturity of a bill of exchange shall take one of the following forms: a- At sight. b - At a specified period after sight. c - At a specified period after the…
- Article 4541 - A bill of exchange payable at sight shall be payable upon its presentment, and must be presented for payment within one year of its date. The drawer may shorten or…
- Article 4551 - The period to maturity of a bill of exchange payable a period after sight shall begin on the date of its acceptance or the date of the protest. 2 - If no protest is…
- Article 4561 - A bill of exchange drawn at one or more months from its date or from the date of sight shall mature on the corresponding date of the month in which payment must be…
- Article 457If the bill of exchange is payable on a specified day and maturity falls at the beginning, middle, or end of the month, these expressions shall mean the first,…
- Article 4581 - If a bill of exchange is payable on a specified day and in a specified country and in a country whose calendar differs from the calendar of the country of its issue,…
- Article 4591 - The holder of a bill of exchange shall present it for payment on its maturity date. Presentation to a legally recognized clearing house shall be equivalent to…
- Article 4601 - The holder of a bill of exchange shall not be compelled to receive its amount before the maturity date. 2 - If the drawee pays the amount of the bill of exchange…
- Article 4611 - If the drawee pays the bill of exchange, he may request its delivery by the holder signed to acknowledge payment. 2 - The holder may not refuse to accept partial…
- Article 4621 - If the bill of exchange is not presented for payment on its maturity date, every debtor thereunder may deposit its amount in the court treasury. The deposit shall be…
- Article 4631 - If payment of the bill of exchange in Kuwait is stipulated in a currency not in circulation there, payment may be made in the currency in circulation there at its…
- Article 464Refusal to pay a bill of exchange shall not be accepted unless it has been lost or its holder has become bankrupt.
- Article 465If an unaccepted bill of exchange is lost and it was drawn up in several originals, the person entitled to its value may demand payment under one of its other originals.
- Article 466If a bill of exchange is drawn in several parts and the part bearing the wording of acceptance is lost, payment may not be demanded under one of its other parts except…
- Article 467A person who has lost a bill of exchange, whether accepted or not, and is unable to present another of its counterparts, may obtain an order from the President of the…
- Article 4681 - In the event of refusal to pay a lost bill of exchange after payment has been demanded in accordance with the provisions of the two preceding articles, its owner…
- Article 4691 - The owner of a lost bill of exchange may obtain a copy thereof by approaching the person who endorsed the bill of exchange to him. That endorser shall assist him and…
- Article 470Payment at maturity pursuant to an order of the President of the Court in the cases referred to in the preceding Articles shall discharge the debtor.
- Article 471The guarantor's obligation stipulated in Articles 466, 467, 469 shall expire upon the passage of three years if no demand or action before the courts is made during that…
- Article 4721 - Where a bill of exchange is not paid to its holder at maturity, the holder may have recourse against its endorsers, its drawer, and the other persons liable thereon.…
- Article 4731 - If the maturity of a bill of exchange falls on an official holiday, payment may be demanded only on the following working day. 2- Likewise, no procedure relating to…
- Article 4741 - Refusal to accept or pay a bill of exchange shall be established in a protest for non-acceptance or non-payment, drawn up by the enforcement officer. 2 - The protest…
- Article 475A protest for non-acceptance must be drawn up within the periods specified for presenting the bill of exchange for acceptance. If the first presentment for acceptance…
- Article 4761 - A protest for non-payment of a bill of exchange payable on a specified day or after a period from its date or from the date of sight shall be made on one of the two…
- Article 477A protest for non-acceptance dispenses with presentment of the bill of exchange for payment and with the preceding concerning the protest for non-acceptance.
- Article 4781 - In the event that the drawee ceases payment, whether or not he has accepted the bill of exchange Law Index 1323 Home Page Commercial Code Decree-Law No. 68 of 1980…
- Article 4791 - The drawer and any endorser or guarantor by aval may exempt the holder of the bill of exchange from drawing up a protest for non-acceptance or non-payment when…
- Article 4801 - The holder of a bill of exchange must notify its drawer and the person who endorsed it to him of its non-acceptance or non-payment within the four working days…
- Article 4811 - The drawer, acceptor, endorser and aval guarantor of a bill of exchange are all liable Law Index 1324 Home Page Commercial Law Decree-Law No. 68 of 1980 Promulgating…
- Article 4821 - The holder of the bill of exchange may claim the following from the person against whom he has a right of recourse: a - The principal amount of the unaccepted or…
- Article 483A person who has paid a bill of exchange may claim the following from his guarantors: 1 - The entire amount he paid. 2 - Interest on what he paid, calculated from the…
- Article 484Courts may not grant periods of grace for payment of the value of bills of exchange or for carrying out any procedure relating thereto, except in the cases provided for…
- Article 4851 - Every person liable against whom a claim on a bill of exchange has been made by way of recourse, or who is liable to such a claim, may, upon making payment, request…
- Article 486In the event of recourse against one of the obligors for the unaccepted portion of the amount of the bill of exchange, the person who pays that portion may require its…
- Article 4871 - The rights of the holder of a bill of exchange against its drawer, endorsers and other obligors, except its acceptor, shall lapse upon expiry of the periods…
- Article 4881 - If an insurmountable event of force majeure prevents presentation of the bill of exchange or the making of a protest within the prescribed time limits, those time…
- Article 489The holder of a bill of exchange in respect of which a protest for non-payment has been drawn up may or impose a precautionary attachment on the movables of each of the…
- Article 490Any person having a right of recourse against other persons liable under the bill of exchange may recover his entitlement by drawing a new bill of exchange on one of his…
- Article 4911 - The recourse bill of exchange shall comprise the amounts specified in Articles 482 and 483, plus any commission paid and any other fees prescribed by law. Law Index…
- Article 492If there are several redrafts, the party to the original bill of exchange or any endorser thereof may be charged only the rate of a single redraft. 2 - Intervention
- Article 4931- The drawer of a bill of exchange, its endorser, and its guarantor by aval may designate a person to accept or pay it in case of need. 2- A bill of exchange may be…
- Article 4941 - Acceptance by intervention shall occur in all cases in which the holder of a bill of exchange capable of acceptance has a right of recourse before its maturity. 2 -…
- Article 495Acceptance by intervention shall be recorded on the bill of exchange itself and signed by the intervening party, and shall state the name of the person for whose benefit…
- Article 4961 - The acceptor by intervention shall be liable towards the holder of the bill of exchange and its endorsers subsequent to the person for whose benefit the intervention…
- Article 4971 - A bill of exchange may be paid by intervention in all cases in which its holder has, at or before maturity, a right of recourse against the persons liable thereon..…
- Article 4981 - If those who accepted the bill of exchange by intervention or those designated to pay it in case of need have a domicile at its place of payment, its holder shall…
- Article 499If the holder of the bill of exchange refuses payment by intervention, he shall lose his right of recourse against the person who would have been discharged by such…
- Article 5001 - Payment by intervention must be evidenced by writing a receipt on the bill of exchange stating the person for whose honour payment was made. If the receipt lacks…
Articles 501 – 60054
- Article 5011 - A person who pays a bill of exchange by intervention acquires all rights arising from it against the person for whose benefit payment was made and against those…
- Article 5021 - Every action arising from a bill of exchange against its acceptor shall be time-barred upon the lapse of three years from the maturity date. Home Page 1328 Law Index…
- Article 503In the event that an action is brought, limitation periods shall run only from the day of the last procedural act therein. 2 - Limitation shall not run if a judgment is…
- Article 504Interruption of limitation shall have effect only in relation to the person against whom the measure interrupting its running was taken.
- Article 505Defendants sued for the debt shall, notwithstanding expiry of the limitation period, declare on oath their discharge from the debt if requested to swear it, and their…
- Article 506A promissory note shall contain the following particulars: 1 - An order clause or the expression “promissory note” written in the body of the note and in the language in…
- Article 507An instrument lacking any of the particulars mentioned in the preceding Article shall not be considered a promissory note, except in the following cases: a- If the…
- Article 5081 - The provisions relating to bills of exchange concerning multiple originals and copies, endorsement, maturity, payment, recourse for non-payment, the impermissibility…
- Article 5091 - The maker of a promissory note shall be liable in the same manner as the acceptor of a bill of exchange. 2 - A promissory note payable at a specified period after…
- Article 510Except for the provisions mentioned in this Part, the provisions governing bills of exchange shall apply to cheques insofar as they do not conflict with their nature.…
- Article 511A cheque shall contain the following particulars: 1- The word cheque written in the body of the instrument and in the language in which it is written. 2- The date of…
- Article 512An instrument lacking any of the particulars mentioned in the preceding Article shall not be considered a cheque, except in the following two cases: 1 - If the cheque…
- Article 5131 - Cheques issued in Kuwait and payable therein may be drawn only on a bank, and instruments drawn in the form of cheques on an entity other than a bank shall not be…
- Article 5141 - A cheque may not be issued unless, at the time it is drawn, the drawer has funds with the drawee which he may dispose of by cheque pursuant to an express or implied…
- Article 5151 - A cheque is not subject to acceptance, and if a statement of acceptance is written on the cheque, it shall be deemed unwritten. 2 - Nevertheless, the drawee may…
- Article 516۱ - يجوز اشتراط وفاء الشيك : أ- إلى شخص مسمى مع النص صراحة على شرط الأمر أو بدونه. ب إلى شخص مسمى مع ذكر شرط - ليس لأمر - أو أية عبارة أخرى تفيد هذا المعنى . ج - إلى…
- Article 5171 - A cheque may be drawn to the order of the drawer himself. 2 - It may be drawn for the account of another person. 3 - It may not be drawn on the drawer himself except…
- Article 518A stipulation of interest in a cheque shall be deemed nonexistent.
- Article 519It may be stipulated that the cheque be payable at another bank situated in the locality of the drawee's domicile or in any other locality.
- Article 5201 - The drawer guarantees payment of the cheque, and any clause by which the drawer exempts himself from this guarantee shall be deemed unwritten. 2 - The creditor's…
- Article 521Multiple Copies and Alteration. Except for a cheque payable to bearer, a cheque may be drawn in multiple identical copies if it is drawn in one country and payable in…
- Article 522If a cheque is drawn in more than one copy, the number of each copy must be placed in its text; otherwise, each copy shall be considered an independent doubt.
- Article 5231 - The drawee alone shall bear the damage resulting from payment of a cheque on which the drawer's signature was forged or the particulars in its text were altered, if…
- Article 5241 - A cheque stipulated to be payable to a named person, whether or not it expressly includes an order clause, shall be negotiable by endorsement. 2 - A cheque…
- Article 525Endorsement to the drawee shall be deemed a receipt and discharge, unless the drawee has several establishments and the endorsement is for the benefit of an…
- Article 5261 - The endorser guarantees payment of the cheque unless otherwise stipulated. 2 - He may prohibit its further endorsement, in which case he shall not be bound by the…
- Article 527The possessor of an endorsable cheque shall be considered its lawful holder whenever he establishes his entitlement thereto through an uninterrupted series of…
- Article 528An endorsement written on a bearer cheque shall render the endorser liable in accordance with the provisions governing recourse, but such endorsement shall not cause the…
- Article 529If a person loses possession of a cheque, whether it is a bearer cheque or is endorsable, the person to whom that cheque has passed shall not be obliged to relinquish it…
- Article 5301 - An endorsement subsequent to protest or made after expiry of the period for presenting the cheque shall produce only the effects of an assignment of rights. 2 - An…
- Article 5311 - Payment of all or part of the amount of a cheque may be guaranteed by a guarantor by aval. 2 - This guarantee shall be given by a third party other than the drawee,…
- Article 5321 - A cheque shall be payable at sight, and any statement to the contrary shall be deemed nonexistent. 2 - If a cheque is presented for payment before the day stated…
- Article 5331 - A cheque drawn in Kuwait and payable therein, its presentation for payment within one month. 2 - If it is drawn outside Kuwait and payable therein. It shall be…
- Article 534If a cheque is drawn between two places using different calendars, its date of issue shall be converted to the corresponding day in the calendar of the place of payment.
- Article 535The drawee shall pay the amount of the cheque even after expiry of the time limit for its presentation. 2 - An objection by the drawer to payment of the cheque shall be…
- Article 536If the drawer dies, loses his capacity or becomes bankrupt after the cheque is issued, this shall not affect the legal consequences arising from it.
- Article 5371 - If several cheques are presented at the same time and the funds available for payment are insufficient to pay Law Index 1334 Home Page Commercial Law Decree-Law No.…
- Article 5381 - If payment of a cheque in Kuwait is stipulated in a currency not in circulation therein, its amount may be paid within the period for presentment of the cheque in…
- Article 539The obligation of the guarantor provided in the event of loss of a cheque to order requires the lapse of six months if no demand or action occurs during that period.
- Article 5401 - If a bearer cheque is lost or destroyed, its owner may lodge an objection with the drawee to payment of its amount. The objection shall include the cheque number,…
- Article 5411 - The possessor of the cheque referred to in the preceding Article may contest the objection before the drawee. The drawee shall receive the cheque from him against a…
- Article 5421 - If six months elapse from the date of the objection provided for in Article 540 without the holder of the cheque coming forward to demand payment, the objector may,…
- Article 5431 - The drawer or bearer of a cheque may cross it, and such crossing shall have the effects specified in the following Article. 2 - Crossing shall be effected by placing…
- Article 5441 - The drawee may not pay a generally crossed cheque except to one of its customers or to a bank. 2 - The drawee may not pay a specially crossed cheque except to the…
- Article 5451 - The drawer or holder of a cheque may stipulate that it shall not be paid in cash by placing on its face the following statement: for credit to an account, or any…
- Article 5461 - The holder of a cheque may have recourse against the drawer or endorsers and other persons liable thereunder if he presents it within the statutory period, its…
- Article 547The holder shall retain his right of recourse against the drawer even if the holder did not present the cheque to the drawee or did not draw up the protest or its…
- Article 548Refusal of payment must be established in the manner prescribed in Article 546 before expiry of the presentment period. If presentment occurs on the last day of that…
- Article 5491 - If an insurmountable event of force majeure prevents presentation of the cheque or the drawing up of a protest or its equivalent within the prescribed time limits,…
- Article 5501 - Actions of recourse by the holder of a cheque against the drawee, drawer, endorser, and other obligors shall be time-barred upon the lapse of six months from the…
- Article 5511 - Where an action is brought, the limitation period prescribed in the preceding Article shall run only from the date of the last procedural step therein. 2 - The said…
- Article 552Interruption of the limitation period shall have effect only in respect of the person against whom the measure interrupting its running was taken.
- Article 553The limitation of an action claiming the value of a cheque shall not prevent the holder from claiming restitution of unjust enrichment from the drawer who did not…
- Article 5541 - If criminal proceedings are instituted against the drawer for a cheque offence, the holder of the cheque who has asserted a civil claim may request the criminal…