Kuwait Court of Cassation principle number 2864

Restriction of the effect of a contract to its parties, universal or particular successors, or creditors. Its implication. The rights and obligations arising therefrom extend only to its contracting parties. - Commercial contract agency. It is based on the concept of representation. The agent therein represents the principal in concluding the transaction. The agent’s adherence to its limits. Its effect: a relationship, with all its effects, arises between the principal and the third party contracting with the principal, while no legal relationship connects the agent with the latter and no rights or obligations accrue to the agent. - A foreign company’s conducting commercial activity itself, independently of its commercial agent. Its effect: the agent is not considered its representative in actions brought by or against it. Example. - As a general rule, a commercial agent is not liable out of the agent’s own assets for the effects of transactions undertaken for the principal’s account.