Kuwait Court of Cassation principle number 2876

The effect of a contract. It extends only to its contracting parties and their universal successors. Dealing with a business as an entity regarded by reference to its trade name without ascertaining the identity of its owner. The devolution of that name, together with the business, upon another. The new owner is bound by the obligations and rights entered into 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. The condition thereof: that this agreement has not been entered in the commercial register or notified to those without concern. The reason thereof: that it reveals the publicity and seriousness of the agreement and balances the different interests.