Kuwait Court of Cassation principle number 3776

Contract agency. Its nature: a contract whereby a person undertakes, on a continuing basis within a specified area of activity, to seek to promote and negotiate the conclusion of transactions in the principal’s interest, or to conclude them and sign and perform contracts in the principal’s name and for his account. He is deemed the principal’s representative in actions brought by or against him within the agency area. Articles 271, 276 of the Commercial Code. An example of a judgment which based its ruling on the respondent’s lack of standing in the action because it failed to appreciate the significance of a document signed by the respondent company’s sales manager, thereby rendering it defective in its reasoning. - 740 - Agency