Kuwait Court of Cassation principle number 2599

Commercial companies - except an undisclosed partnership - possess legal personality from their formation and are independent of the persons of their partners. - A partner signing a loan agreement with the bank in his personal capacity, failure to pay the sums covered by that contract on their due date, the bank suing him in his personal capacity in an action in which judgments at first instance and on appeal ordered him to pay the amount, and his subsequently signing a debt settlement agreement with the creditor bank in his personal capacity, with the agreement containing no reference to his capacity as a partner in the company or to the company being a party thereto. Import thereof. The effects of the agreement extend to its parties in their personal capacities. The judgment’s departure from this. It vitiates it and requires its cassation. - 446 - Commercial - Settlement contract:-