Kuwait Court of Cassation principle number 3749

The characterization of the relationship governing the two parties to an agency depends on what the trial court finds to be the truth from the facts and circumstances presented to it. - The general rule is that the agent acts in the principal’s name. The exception: the agent acts in his personal name. The reason: concealing the principal’s name in the transaction if the principal so wishes. The effect thereof. The relationship between them becomes that of an agent - 734 - Agency to his principal through a nominee arrangement or concealment, and is governed by the provisions on agency. The agent is thus prohibited from appropriating for himself anything he was entrusted to obtain for his principal’s account. He must return to the principal the money in his possession and the rights acquired for the principal’s account. Prescription of these rights is suspended for the period barring the hearing of an action concerning them so long as the agency continues and the account between them has not been settled. The reason for this. An example. Insurance agency: