A commercial act is an act intended to result in profit even if the doer of the act is not a registered merchant.

The following activities are considered commercial:

• Buying products, commodities, services for the purpose of selling them back whether, as they are, or after undergoing a manufacturing process.

• Buying products, commodities, services (material or immaterial) for the purpose of leasing them to others.

• Selling or leasing or subletting any commodity or product or service.

• Employing a person for the purpose of subletting his work to others.

• All forms of supply contracts.

• Buying and selling real estate (plots, buildings, houses etc)

The following activities are considered commercial regardless of who undertakes them (whether he is a registered merchant or not):

These two books are the least the merchant should have; different types of books are required for smooth business to run which is not the concern of law. The commercial books (the accountancy books) should be clear of any scratches, deletions, additions, margin writings, or whitening, or writing between lines.

These books should be taken to the Public Notary in the Ministry of Justice to put the seal on all pages of the books before it is used (this is not mandatory), no fees are required. When the book is full, it should be taken back to the Public Notary for putting the seal on it indicating the book can no longer be used for recording additional data. A merchant must keep his invoices, receipts, vouchers, and other documents for a period of five years, after this period he can dispose them off without any legal liability effected on him or his business. As for the ledger and other accountancy books he should keep them for a period of ten years.

If a merchant employing a certain employee, gives that employee a certificate of good conduct knowing that employee is not deserving and not trust worthy, and that employee seeks a different merchant as employer submitting this certificate of good conduct; then if any bad thing happens from that employee to his new employer (the second merchant), the new employer can demand compensation from the first employer (merchant).

Any merchant practicing a trade that provides information about merchants who supplies faulty information of a kind, causing some harm to those requesting the information, can be sued by those affected for appropriate compensation.

Any form of commercial conduct meant to cause hindrance to a competitor, or hurt his reputation, or underrate his product or service, is considered as a form of illegal competition. Merchants should not collude among themselves to fix a price for a certain products, or service aiming at causing harm to other merchants. The law punishes any merchant practicing monopoly and illegal competition by fining him between KD 1000 and three times what profit he made.

The commercial law is considered complementary to civil law as regards the rules concerning obligations and contract; and the civil law applies when no direct and express text in the commercial law is relevant to a certain case.

All those obligated, in a certain commercial debt, to pay the creditor are considered as jointly indebted to the creditor, and the creditor has the right to demand his debt when mature, or as agreed, from any one of the joint debtors (debtors in a common commercial debt).

But if the debtor wishes to pay off his debt before it is due, then the creditor can refuse to accept the money unless the debtor pays the interest in full, and as agreed upon. A creditor is not obligated to postpone the due date of debt if the debtor asks for that because of his inability to pay on time.

If the merchant does not hand over the merchandise to the client in the agreed-upon time, the sale clauses in the contract is considered void unless the client wishes to continue the contract. If the client receives the merchandise later than the delivery date in contract, and as a consequence of that he suffers some losses, he may claim compensation; especially if he were to buy from another source with a higher price.

If the buyer receives the merchandise with extensive shortages, he may cancel the contract and claim compensation, or decrease the amount to be paid to seller commensurate with the shortages. The buyer can do both actions any time within a year of purchase of receipt of merchandise.

If the buyer does not pay the value of merchandise in the agreed-upon time then the seller has the right to demand an increment in price if he could have sold it for a better price after the passing of the agreed-upon date without payment from buyer. But if the buyer refuses to receive the delivered merchandise without any legally acceptable reason, then the seller has the right to deposit the merchandise at a safe place and auction it off after a certain period of time after informing the buyer. But if the merchandise were perishable, the seller can sell off the undelivered merchandise and deposit the proceeds in the court after deducting his dues and all expenses incurred on him by this action.

In the commercial sale agreement all details about merchandise, payment, and delivery should be included. This will help the seller and buyer in concluding a safe and mutually satisfying transaction.

The legal rules defined above are applicable even if the contracting parties in the sale call the sale a lease contract. This is meant to overprotect the seller by considering any resale of merchandise bought on installment as a form of cheating, or breach of trust, which is considered a crime.

A transport contract is an agreement by which the transporter agrees to transport a thing or a person from one place to another for a fee.

The sender of merchandise is supposed to pay the carrier unless it is indicated in the contract that the recipient of merchandise pays, in which case both sender and recipient will be jointly held responsible to pay the carrier. A carrier cannot claim fees for whatever merchandise perished by force majeure.

Sender of goods (merchandise) can ask the carrier to deliver the goods to a party other than the one designated in the contract provided he pays the fees, and whatever compensation needed to the carrier. He can also ask him to return the goods back to him but this cannot be effected if the sender does not provide the freight policy, or if the recipient already received the goods.

The owner of transported goods has the right to dispose of his goods the way he likes, and in accordance with the freight policy, and he himself bears the responsibility for loss of goods during transport unless there exists a reason for someone else to be responsible for example, the carrier.

The carrier must put the goods on board his freighter (truck, ship, airplane) and arrange it well, and if the sender wishes to put the materials or goods on board himself, the carrier has the right to refuse or allowing him so, or let him do so under his supervision, and make sure the placement is proper.

The carriers bears full responsibility for the delivery of goods in proper condition if he were to delay in delivery.

In case the goods in the custody of carrier is lost for whatever reason, he is held liable to compensate the sender, or pay the recipient at the destination point the market price of goods, whether the price of goods is indicated in the policy, or not. If the price of goods is indicated in the policy, the carrier can contest the price of goods to prove their real price if he thinks the price in the policy document is exaggerated.

If the carried goods were perishable, and some damages happened to the goods due to negligence of carrier, or whatever reason effected by carrier, then it is legally possible to relinquish the goods to the carrier in return for an equivalent compensation (amount of money equivalent to price of goods).

If the recipient of goods at the destination does not place any reservation regarding the goods, and he discovers later on that the goods suffered damages, then the recipient loses his right to ask for compensation. But if upon receiving the goods he finds defects in them and can prove so, then he must file a compensation lawsuit against the carrier within 30 days from delivery date. Ascertaining the condition of goods upon arrival must be done by knowledgeable administrative personnel or by an expert appointed by courts to exclude any possibility of error.

The carrier cannot relieve himself from responsibility concerning the proper condition of goods during transportation, or upon delivery except if the damages occur due to force majeure, or a delinquency from the sender; or recipient, or due to defects in goods, and in all cases he has to prove that in the court.

The carrier bears full responsibility for whatever deeds his employees do when executing the contract. The carrier can relieve himself in writing, submitted to sender of any liability regarding delay in delivery, and he can define clearly his responsibility regarding damage to goods and actual compensation except if damage to goods was due to grave or intentional error.

In case of goods were transported by carrier under the supervision of sender, or the recipient then it is their responsibility if damages to goods occur, unless a mistake made by carrier or his staff leads to the damages.

The carrier is held liable for loss or damage of luggage or other personal property, if he were negligent and committed an error that led to that; if death to a passenger occurs in the means of transportation, the carrier must keep the belongings of the deceased and hand it over to the concerned heirs or police. The passenger has to pay the fees even if he changes his mind and decides not to travel unless he dies or falls ill, in which case the contract is considered null and the passenger can refund his money, or decide not to pay it. If the passenger refuses to pay the fee, the carrier has the right to hold up the passenger's property (luggage, and other personal things in carrier's custody) till he gets his money or he can sell the luggage and get his money from the proceeds.

Air transport is carrying passengers aboard planes to global destination, and airfreight of all kinds, in return for a certain designated fee. The luggage are the bags that the passenger brings with them and hands over to the carrier's employee for weight checking and labeling. A label should be affixed to the passenger's ticket to prove his ownership of the luggage. All what is being stated in the law regarding transport of goods, or passengers apply as well with the following rules specifically for air travel.

An airliner is responsible for the safety of passengers whether they are in the premises of the airliner, or going on board, or unboarding. The airliner is held liable for all kinds of damage incurred on passengers, be they moral or material.

As for the personal belongings carried by the passengers on board, the airliner compensate for loss or damage to a maximum of KD.120 only if the airliner was responsible for their loss. Any condition exempting the carriers from responsibility to compensate is considered null and void unless goods or luggage contain defects that contribute to their destruction or loss.

Goods sent by airfreight are packed and sent without any reservation regarding their condition, (they are considered in good condition and not having any damage) unless the carrier can prove otherwise. If the recipient discovers any damage in the goods he should notify that immediately on the policy documents, or within seven days at most regarding damage incurred on luggage. As regarding damage noticed on goods, the recipient must report that within 14 days from day of receiving goods. And if for whatever reason a delay takes place from the recipient side to protest to the carrier about the condition of goods received, then it should be done within 21 days from the day the goods were received, and in this case the protest of the recipient regarding damaged goods should be in the form of a notification sent from the court to the carrier (airliner). A copy of this protest should be attached to the freight policy when filing a case against the carrier in the appropriate time (within 21 days). The prescription period (denying right to sue the airliner) is after the passing of two years from the date the plane carrying the damaged goods arrives, or the day it was supposed to arrive, or when the transport ceased.

Lawsuits will not be heard if filed after one year from delivery date, if the merchandise or goods received are damaged, wholly or partially, or did not arrive within the agreed-upon time. Anyone who commits a major mistake concerning the transport act shall not have right to uphold the prescription rule in court. Any agreement by the parties counter to the law is considered null and void.

Extensive legislation to reform Kuwait's economy, liberalise its business laws and comply with WTO rules was issued by Amiri Decree in June 1999. In May 2000 the National Assembly approved the indirect Foreign Investment Law which allows foreigners to own stocks on the Kuwait Stock Exchange (KSE). Law No. 20/2000 on allowing non-Kuwaitis to possess shares in Kuwaiti shareholding companies was approved. According to the Article (1) of the law, non-Kuwaitis may possess shares in the Kuwaiti shareholding companies already incorporated during the effective date or which may be incorporated after its implementation. Non-Kuwaitis may participate in the establishment of these companies in accordance with the provisions of the law. In August 2000 the Kuwaiti Cabinet approved regulations necessary to implement the bill allowing foreigners to own stocks and trade on the bourse. The legislation allows foreign investors and expatriates living in Kuwait to own up to 100 per cent of the stock of Kuwaiti companies listed on the KSE, except in banks where the ownership will be limited to 49 per cent.

With the passing of Law No. 8/2001, the Direct Foreign Capital Investment Law came into effect. Under FCIL, foreign companies are now exempt from the stipulation of having a Kuwaiti partner(s) having 51% ownership. This law has now enabled any foreign company (in certain circumstances) of having 100% ownership of any legal business in Kuwait. Furthermore, under the FCIL special incentives are provided to foreign companies to attract their investment in Kuwaiti companies, for example, tax holidays for periods of up to ten years, double taxation where applicable, whole or partial exemption from tariffs on imports of machinery, spare parts, raw materials etc.