Kuwait Court of Cassation principle number 873

Contract agency. Its nature: a contract under which a person undertakes, on a continuing basis, to endeavour within a particular area of activity to conclude transactions for the principal's benefit in return for remuneration, or its being limited merely to soliciting and negotiating the conclusion of transactions; it may extend to include concluding and performing transactions in the principal's name and for his account. The agent is thus merely the principal's representative 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: the agent may be sued in an action relating to the transaction only in his capacity as representative of the principal; otherwise, the action is brought against a party lacking standing. The challenged judgment's departure from this view. A violation of the law and an error in its application requiring its quashing.