Kuwait Court of Cassation principle number 1577

The effect of a contract. It extends only to its contracting parties and their universal successors. Dealing with a commercial establishment as an entity with regard to its trade name without considering the identity of its owner. Devolution of that name to another along with the establishment. Obligation - 314 - Obligation of the new owner in respect of the obligations and rights concluded with the previous owner under that name, although he is not his universal successor. This substitution remains effective even if an agreement between the parties provides otherwise, to prevent circumvention and protect third parties. Its condition: that this agreement has not been entered in the commercial register or notified to the person concerned. The reason therefor: it reveals the publicity and seriousness of the agreement and balances the various interests. Contractual liability Elements of liability: Fault: