Kuwait Court of Cassation principle number 2331

Simulation. Its nature: an agreement between two parties to effect an apparent, unreal transaction concealing the true relationship between them. As between the contracting parties and their universal successors, regard is had to the true concealed contract, not the simulated concealing contract. - Evidentiary force of an official instrument. It depends on the particulars recorded therein. An interested person may prove the contrary of its contents by all means of proof, and may challenge it on grounds of simulation or the ineffectiveness of the transaction, even if registered, because registration does not protect it from challenge on grounds of its defects. - Formation of companies and sale and purchase of their shares and bonds. A commercial act. Its effect. The simulation of this contract may be proved by all means of proof. - Understanding the facts of the case and assessing evidence of simulation. Within the authority of the court of merits. - 403 - Commercial - Performance of the contract:-