Kuwait Court of Cassation principle number 3789

Contract agency. Its nature: a contract whereby a person undertakes, on a continuing basis, to endeavor within a specified area of activity to conclude transactions in the principal’s interest for remuneration, or its restriction to mere solicitation and negotiation for the conclusion of transactions; it may extend to include concluding and performing transactions in the principal’s name and for his account, so that the agent is merely a representative of the principal in concluding the transaction and the relationship is directly between the principal and the third party with whom the contract was concluded. The necessary consequence: joining the agent as a defendant in an action concerning the transaction may only be in his capacity as representative of the principal; otherwise, the action is brought against a person lacking standing. The challenged judgment’s departure from this view. A violation of the law and an error in its application necessitating its cassation. Commission agency: