Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 1629

State of Kuwait · Commercial and Labour — Volume 9 · Ministry of Justice — Court of Cassation — Technical Office

English translation of the principle

An undisclosed partnership. Its nature. A commercial partnership concluded between 2 or more persons, confined to the relationship between them, characterised by concealment, possessing no legal personality and having neither capital nor a name. - Specifically identified contributions made by partners in an undisclosed partnership are considered their property to the exclusion of the other partners. Contributions not specifically identified. Their ownership passes to the manager of the undisclosed partnership and they become a debt owed by the debtor to the contributor. Its implication. The partnership is not liquidated when it must be dissolved; rather, the partners demand an account from the debtor to ascertain profit and loss, and each is considered a creditor of the debtor for his contribution and share of profit.
Arabic original
شركة المحاصة. ماهيتها. شركة تجارية تنعقد بين شخصين أو أكثر وتكون مقصورة على العلاقة فيما بينهما وتتسم بالخفاء ولا تتمتع بالشخصية المعنوية وليس لها رأس مال ولا عنوان. - الحصص المعينة بالذات التي يقدمها الشركاء في شركة المحاصة تعتبر ملكاً لهم دون غيرهم من بقية الشركاء. الحصص غير المعينة بالذات. انتقال ملكيتها إلى مدير المحاصة وتصبح دينا لمقدمها في ذمة المدين. مؤدى ذلك. أن الشركة لا تصفى إذا ما وجب فسخها وإنما يطالب الشركاء المدين بحساب لمعرفة الربح والخسارة ويعتبر كل منهم دائناً للمدين بحصته ونصيبه في الربح.
Original Arabic judgment citations

(الطعن ٤٩٥/٢٠٠٢ تجاري جلسة ٢٢/١٢/٢٠٠٣ مج القسم الخامس - المجلد الثامن ص ١٢١)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 285. PDF pages: 285.

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