Judicial principle — Kuwait Court of Cassation

Kuwait Court of Cassation principle number 2699

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

English translation of the principle

A non-Kuwaiti engaging in commerce individually. Impermissible unless the non-Kuwaiti has a Kuwaiti partner or partners whose capital is not less than 51% of the capital of the jointly owned business. The purpose of this prohibition and its relation to public policy. The sanction for its violation. Absolute nullity. - A void contract cannot serve as a basis for claiming any obligations and cannot be ratified.
Arabic original
اشتغال غير الكويتي بالتجارة منفرداً. لا يجوز ما لم يكن له شريك أو شركاء كويتيين لا يقل رأس مالهم عن ٥١% من رأس مال المتجر المشترك. الغرض من هذا الحظر وتعلقه بالنظام العام. جزاء مخالفته. البطلان المطلق. - العقد الباطل لا يصلح سبباً للمطالبة بأي التزامات ولا تلحقه الإجازة.
Original Arabic judgment citations

(الطعن ٣٦٥/٩٧ تجاري جلسة ٢٣/٢/١٩٩٨ مج القسم الرابع - المجلد الخامس ص ٤٠٥)

Source: Court of Cassation legal principles collection — Commercial and Labour — Volume 9 — Ministry of Justice — Court of Cassation — Technical Office. Printed page 462. PDF pages: 462.

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