Kuwait Court of Cassation principle number 1626

Undisclosed partnership. Its concealed nature, lack of legal personality, and lack of an independent patrimony. Liquidation is inapplicable to it. The reason for this. - An undisclosed partnership agreement. A bilaterally binding contract. The effect thereof. Nullity and rescission apply to it. The effect of its nullity or rescission. - The contracting parties’ violation of a rule relating to public policy. Its sanction. Absolute nullity. The effect of absolute nullity. - The rule that nullity does not operate retrospectively. Exceptions thereto. - Recognition of a void contract during the period following its conclusion and until its nullity is declared. Its import. Recognition of the unlawful act prohibited by law. This means that the nullity of an undisclosed partnership does not entail application of the general provisions of the Companies Law; rather, the contracting parties are restored to the position they occupied before contracting.