Civil & Commercial Laws and Litigation

The Kuwaiti economy is primarily a trading economy. Kuwaiti business men and merchants possess sharp skills and business acumen with respect to trading in goods and services. Over the years their trading habits and customs developed into well-defined business practices regulated by law. The appointment of commercial agents flooded the Kuwaiti market with foreign products and transformed the ordinary merchants into traders and commercial venturers. Agencies are in existence even today though other forms of commercial activities have also been developed and are practiced in the region.

It is therefore quite natural for all Kuwaiti business men and companies to be well versed in the laws regulating commercial agencies and the Law of Commerce as a whole (commercial agency being a part thereof). Besides, Kuwaiti entrepreneurs are also familiar with the Commercial Companies Law, which defines and regulates the various types of companies and commercial entities.

The significant laws pertaining to civil and commercial litigation are mainly the Law of Commerce No. 68 of 1980, the Civil Code No. 67 of 1980, the Commercial Companies Law No. 15 of 1960, the Civil and Commercial Procedure Code No. 38 of 1980 and the Law of Evidence in Civil and Commercial Matters Law No. 38 of 1980. The first three laws deal with the substantive issues while the latter two regulate the procedure for civil and commercial litigation in Kuwait.

The Civil Code provides the general rules of law under the Kuwaiti legal system. The law enacting the Civil Code Law No. 67 for the year 1980 provides in Article (3) that the Civil Code provisions do not supersede the provisions of specific laws that regulate specific matters. The Commercial Code provides in Article (1) that the Commercial Code provisions shall apply to all commercial transactions undertaken by any person even if he is not a merchant. Article 96 of the Second Book of the Commercial code provides that "Except as provided for in this Book the rules provided or in the Civil Code shall apply to all commercial obligations and contracts.