Kuwait Court of Cassation principle number 2061

Simulation. Its nature: an agreement between two parties to undertake an apparent, unreal disposition concealing the true relationship between them. As between the contracting parties and their universal successors, regard is had to the genuine concealed contract rather than the simulated concealing contract. - The evidentiary force of an official instrument. Depends on the particulars recorded therein. An interested party may prove the contrary of its contents by all means of proof and may challenge it on grounds of simulation or the ineffectiveness of the disposition, even if registered, because - 384 - Obligation registration does not protect it from challenge on grounds of defects affecting it. - Establishing companies and selling and purchasing their shares and bonds. A commercial act. Its effect. The simulation of this contract may be proved by all means of proof. - Understanding the facts of the case and assessing evidence of simulation. Within the authority of the court of merits.