المحامي فهد أنور الحداد — LAWYER FAHAD AL-HADDAD
Judicial collection

Cassation principles Commercial and Labour — Volume 9

Ministry of Justice — Court of Cassation — Technical Office · من 1/10/1972 حتى 31/12/2011 · 4,069 available principles

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  1. - بطلان العقد وانعدامه

    Principle 2709Nullity of a contract concluded by a non-Kuwaiti for contravening the prohibition in the Commercial Code or any other legislation prohibiting a non-Kuwaiti from engaging in commerce in Kuwait requires restoring everythinCommercial and Labour — Volume 9 · Source page ٤٦٣
  2. Principle 2710Nullity of a contract concluded by a non-Kuwaiti for contravening the prohibition contained in the Commercial Code or any other legislation. Its implication. Everything must be restored to its original state and each conCommercial and Labour — Volume 9 · Source page ٤٦٤
  3. Principle 2711Engaging in trade in Kuwait. Prohibited for non-Kuwaitis except through a Kuwaiti partner or partners holding at least 51% of the total capital. A non-Kuwaiti may not engage in trade individually. This pertains to publicCommercial and Labour — Volume 9 · Source page ٤٦٤
  4. Principle 2712Nullity of a contract concluded by a non-Kuwaiti in violation of the prohibition contained in the Commercial Code or any other legislation prohibiting him from engaging in commerce in Kuwait. Its requirement. RestorationCommercial and Labour — Volume 9 · Source page ٤٦٤
  5. Principle 2713Nullity of the contract. Its effect: its nonexistence from the time of its conclusion and the disappearance of every effect of its performance. Its consequence: restoring everything to its original state and each contracCommercial and Labour — Volume 9 · Source page ٤٦٤
  6. Principle 2715Nullity or annulment of a contract. Its effect. Its elimination retroactively to the time of its conclusion and treating its performance as though it had not occurred, while restoring the contracting parties to their posCommercial and Labour — Volume 9 · Source page ٤٦٥

  7. - إبطال العقد

    Principle 2716Annulment or nullity of a contract. Its effect. Restoring the contracting parties to the position they occupied at the time of contracting. Impossibility thereof. Permissibility of ordering equivalent performance. ArticlCommercial and Labour — Volume 9 · Source page ٤٦٥
  8. Principle 2719Avoidance or nullity of a contract. Its effect. Restoration of the contracting parties to their position at the time of contracting. Impossibility thereof. An obligation to provide equivalent performance may be imposed. Commercial and Labour — Volume 9 · Source page ٤٦٦

  9. - الأحكام القانونية المكملة للعقد

    Principle 2720Insurance contract. The insured’s duty to state all circumstances known to the insurer at the conclusion of the contract. The insured’s failure or submission of an incorrect statement capable of changing the subject of tCommercial and Labour — Volume 9 · Source page ٤٦٦

  10. الوفاء بالعملة الأجنبية

    Principle 2721Scope of the contract. Its inclusion of supplementary and interpretative legal provisions. Reason therefor. - The contracting parties’ omission of certain details in reliance on their being provided for by law. Import thCommercial and Labour — Volume 9 · Source page ٤٦٦
  11. Principle 2723The general rule is that a judgment imposing an obligation to pay a sum of money must be in the national currency, unless payment in foreign currency has been agreed upon.Commercial and Labour — Volume 9 · Source page ٤٦٧
  12. Principle 2725The general rule for obligations to pay a sum of money is that payment is made in Kuwaiti currency. The exception. Agreement to pay in a foreign currency. Payment must be made in that currency.Commercial and Labour — Volume 9 · Source page ٤٦٧
  13. Principle 2726The nonexistence of all legislation and decisions issued by Iraq during the Iraqi occupation of the State of Kuwait. Example concerning the abolition of the Kuwaiti currency.Commercial and Labour — Volume 9 · Source page ٤٦٧
  14. Principle 2727Payment in foreign currency is permissible, whether upon concluding the contract or upon its performance. Article 174 Civil Code. The issuance of an Amiri Order on 3/8/1990 contradicting this. It has no effect on the perCommercial and Labour — Volume 9 · Source page ٤٦٧
  15. Principle 2728A change in the currency exchange rate, upward or downward, at the time of payment from that at the time of the agreement fixing its amount. Effect thereof. The debtor’s obligation remains for the same amount specified iCommercial and Labour — Volume 9 · Source page ٤٦٧
  16. Principle 2729Reliance on the provisions of the legislation of a state other than the State of Kuwait. Impermissible. The Amiri Order of 3/8/1990. Payment in foreign currency during the period of Iraqi aggression against the country. Commercial and Labour — Volume 9 · Source page ٤٦٧
  17. Principle 2731The contracting parties’ agreement, upon conclusion or performance of the contract, that the obligation shall be discharged in foreign currency. Permissible. It does not contravene the Amiri Order issued on 3/8/1990. TheCommercial and Labour — Volume 9 · Source page ٤٦٧
  18. Principle 2732Agreement, upon conclusion of the contract or its performance, that payment shall be in a foreign currency. Permissible. The reason therefor. The Amiri Order issued on 3/8/1990 does not repeal the permissibility of this Commercial and Labour — Volume 9 · Source page ٤٦٨
  19. Principle 2733Permissibility of agreeing on payment in foreign currency. The Amiri Order issued on 3/8/1990 does not entail repeal of what is prescribed under the second paragraph of Article 174 of the Civil Code.Commercial and Labour — Volume 9 · Source page ٤٦٨
  20. Principle 2734Measures, decisions and regulations issued by the Iraqi occupation authorities during the invasion period. They are legally nonexistent and produce no effect. Basis for this. Example concerning their decision to withdrawCommercial and Labour — Volume 9 · Source page ٤٦٨
  21. Principle 2735Decisions issued by the occupation authorities during their occupation of the State of Kuwait abolishing the Kuwaiti currency. Nonexistent. What is relied upon in this regard is the Kuwaiti dinar. The Amiri Order issued Commercial and Labour — Volume 9 · Source page ٤٦٨
  22. Principle 2736The general rule is that, in an obligation to pay a sum of money, payment is made in Kuwaiti currency unless payment in a foreign currency has been agreed upon.Commercial and Labour — Volume 9 · Source page ٤٦٨
  23. Principle 2737Article Five of the Amiri Order issued on 3/8/1990 does not contain any repeal of the established permissibility of agreeing to discharge an obligation in foreign currency.Commercial and Labour — Volume 9 · Source page ٤٦٨
  24. Principle 2738Decrees and decisions issued by the State during and after the Iraqi invasion to protect the public interest, the State’s economic system, and the integrity of banknotes. Their issuance by the State as a governing authorCommercial and Labour — Volume 9 · Source page ٤٦٨

  25. - البطلان المطلق (المتعلق بالنظام العام)

    Principle 2740International jurisdiction of the Kuwaiti courts. Its connection with State sovereignty. The consequence thereof. It concerns public policy. The effect thereof. Invalidity of an agreement excluding the national judiciaryCommercial and Labour — Volume 9 · Source page ٤٧٠
  26. Principle 2741The cash deposit transaction that exchange companies are prohibited from undertaking. Its classification as a banking activity. Its definition. Its types. The rationale for the prohibition. It is to prevent exchange compCommercial and Labour — Volume 9 · Source page ٤٧٠
  27. Principle 2742Business. Its definition. Its elements: tangible and intangible. - Official form is an essential element in the formation of a sale of a business. Consequence of its absence. Nullity of the contract. This concerns publicCommercial and Labour — Volume 9 · Source page ٤٧٠
  28. Principle 2743Prohibition on a foreigner engaging in commerce in Kuwait alone. A mandatory rule relating to public policy. The rationale therefor. A foreigner may engage in commerce with a Kuwaiti partner or partners, provided that thCommercial and Labour — Volume 9 · Source page ٤٧٠
  29. Principle 2744A non-Kuwaiti is legally prohibited from engaging in trade, whether personally or by concealing himself and hiding behind another person. The purpose of the prohibition. Its connection with public policy. - The sanction Commercial and Labour — Volume 9 · Source page ٤٧٠
  30. Principle 2745The legislature's imposition of a particular form for a contract or its amendment. Pursuit of a public interest connected with public policy. Absence of the formality. Its effect. Non-existence of the contract or amendmeCommercial and Labour — Volume 9 · Source page ٤٧٠
  31. Principle 2746Prohibition on a foreigner engaging in commerce unless he has a Kuwaiti partner whose share is not less than 51% of the commercial establishment's capital. The reason for this prohibition. Its connection with public poliCommercial and Labour — Volume 9 · Source page ٤٧٠
  32. Principle 2747Prohibition on a non-Kuwaiti engaging in trade in Kuwait personally or through investment unless he has a Kuwaiti partner holding no less than 51% of the total capital of the business. The legislature's purpose in this pCommercial and Labour — Volume 9 · Source page ٤٧١
  33. Principle 2748The rules relating to opening or owning an establishment or office for the purpose of engaging in trade or practising a profession or craft. Obtaining a licence from the Ministry of Commerce and Industry. Its condition iCommercial and Labour — Volume 9 · Source page ٤٧١
  34. Principle 2749Prohibition on a non-Kuwaiti engaging in commerce except with a Kuwaiti partner or partners holding at least 51%. The legislature’s objective in this prohibition. Protecting local commerce and safeguarding national commeCommercial and Labour — Volume 9 · Source page ٤٧١
  35. Principle 2751A rule concerning public policy. The sanction for its contravention. Absolute nullity of the contract. The effect of this nullity. Restoration of the contracting parties to the position they occupied before contracting. Commercial and Labour — Volume 9 · Source page ٤٧١
  36. Principle 2752Prohibition on a non-Kuwaiti engaging in trade except with a Kuwaiti partner or partners holding at least 51%. The legislature’s objective in this prohibition. Protecting local trade and safeguarding national commercial Commercial and Labour — Volume 9 · Source page ٤٧١
  37. Principle 2753Engaging in trade is prohibited for a non-Kuwaiti unless he has a Kuwaiti partner or partners whose capital is not less than 51%. Its connection with public policy. Reason for this.Commercial and Labour — Volume 9 · Source page ٤٧٢
  38. Principle 2754Rules concerning the opening and ownership of shops and establishments for the purpose of engaging in commerce or practising a profession or craft. Their regulation by the legislature under Law 32 of 1969. Its purpose. ECommercial and Labour — Volume 9 · Source page ٤٧٢
  39. Principle 2757The legislature's specification of the activities which exchange companies are licensed to conduct and its prohibition on their conducting banking activities, including accepting bank deposits. The Minister of Finance's Commercial and Labour — Volume 9 · Source page ٤٧٢
  40. Principle 2759A non-Kuwaiti engaging in trade in Kuwait. Impermissible except through a Kuwaiti partner or partners holding at least 51% of the total capital. Rationale therefor. Determining the nature of the work. A matter of fact. CCommercial and Labour — Volume 9 · Source page ٤٧٣
  41. Principle 2760Prohibition on undertaking to supply expatriate workers. Charitable associations and trade unions are exempt from this prohibition provided they obtain a licence to do so. Violation of this prohibition. Its effect: absolCommercial and Labour — Volume 9 · Source page ٤٧٣
  42. Principle 2761Opening or owning any establishment or office for the purpose of engaging in trade or practising a profession or craft. Impermissible without a licence from the competent authority. The licence is issued only to a KuwaitCommercial and Labour — Volume 9 · Source page ٤٧٣
  43. Principle 2764Legislation regulating tax assessment procedures. Its relation to public policy. Its violation. Its effect. Nullity.Commercial and Labour — Volume 9 · Source page ٤٧٣
  44. Principle 2767The disputed debt arising from an interest-free loan upon which the contracting parties' common intention converged and which was not intended for a commercial purpose. Its effect. It is subject to the provisions of the Commercial and Labour — Volume 9 · Source page ٤٧٤
  45. Principle 2768Entitlement to default interest, whether statutory or contractual. Its prerequisite. The debt whose payment the debtor delayed must arise from a commercial obligation or commercial act. Absence of this character from theCommercial and Labour — Volume 9 · Source page
  46. Principle 2769Bankruptcy provisions and rules. Their relation to public policy. - A judgment declaring bankruptcy. It is not issued solely in favour of the creditor requesting it, but in the interest of all creditors, even if they werCommercial and Labour — Volume 9 · Source page
  47. Principle 2770The contract of a limited liability company. Official form is an essential element thereof, of a contract by which any partner transfers his share therein, and of the power of attorney issued to another person to executeCommercial and Labour — Volume 9 · Source page
  48. Principle 2772Foreign companies. Prohibition on establishing branches in Kuwait or conducting commercial business therein except after obtaining a license therefor from the Ministry of Commerce and Industry. The two conditions for issCommercial and Labour — Volume 9 · Source page
  49. Principle 2773Undisclosed partnership. It may be formed by natural and legal persons. That partnership is managed by one of its partners, but he does not legally represent it before third parties. The reason: his dealings with third pCommercial and Labour — Volume 9 · Source page
  50. Principle 2776The right of a shareholder member in joint-stock companies to bring an action for nullity of any resolution adopted by the general meeting. The condition thereof. That the resolution contravene the law, public policy, orCommercial and Labour — Volume 9 · Source page
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