Kuwait Court of Cassation principle number 771

An undisclosed partnership: its concealed nature, lack of legal personality and absence of a separate patrimony. It is not subject to liquidation. Reason therefor. - The contract of an undisclosed partnership. A contract binding on both parties. Effect thereof. It is subject to nullity and rescission. Effect of its nullity or rescission. - The contracting parties’ violation of a rule relating to public order. Its consequence. Absolute nullity. Effect of absolute nullity. - The rule that nullity does not have retroactive effect. Exceptions thereto. - Recognition of a void contract during the period following its conclusion until its nullity is declared. Its implication. Recognition of the unlawful act prohibited by law. This means that the nullity of an undisclosed partnership does not entail application of the general provisions of the Companies Law; rather, the contracting parties are restored to the position they occupied before contracting.