Kuwait Court of Cassation principle number 3090

An undisclosed partnership. Its concealment and lack of the personality concerned and of a separate patrimony. Liquidation does not apply to it. Rationale therefor. - An undisclosed partnership contract. A bilaterally binding contract. Effect thereof. Its susceptibility to nullity and rescission. Effect of its nullity or rescission. - The contracting parties' violation of a rule relating to public policy. Its sanction is absolute nullity. Effect of this nullity. - The rule that the effect of nullity does not extend to the past. Exceptions thereto. - Recognition of a void contract during the period following its becoming binding and until its nullity is determined. Its implication. Recognition of the unlawful act prohibited by law. The implication of this is that the nullity of an undisclosed partnership does not entail application of the special provisions of the Companies Law; rather, the contracting parties are restored to the position they occupied before contracting. - 526 - Commercial