Kuwait Court of Cassation principle number 2068

Contract agency. Its nature: a contract whereby a person undertakes, on a continuing basis, to seek, within a particular area of activity, to conclude transactions for the principal’s benefit in return for remuneration, or its restriction to mere solicitation and negotiation for the conclusion of transactions; it may extend to include concluding and executing transactions in the principal’s name and for his account, such that the agent is 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. Necessary consequence: joining the agent as a defendant in an action relating to the transaction may only be in his capacity as representative of the principal; otherwise, the action is brought against a person lacking the requisite capacity. The challenged judgment’s departure from this view. A violation of the law and an error in its application requiring its cassation. - 360 - Commercial - Commission agency:-