Commercial disputes are among the most significant challenges facing companies and entrepreneurs in Kuwait, especially with the diversity of commercial activities and the complexity of contractual relationships. The Kuwaiti legislator has been keen to regulate these disputes through clear laws and multiple mechanisms for their resolution, ensuring the protection of rights and achieving stability in the commercial environment.
First: Concept of Commercial Disputes
A commercial dispute is a legal disagreement arising between two or more parties due to a business relationship, such as:
- Breach of contract terms.
- Delay in paying financial obligations.
- Disputes between partners.
- Conflicts related to supply or commercial agencies.
- Unfair competition. These disputes are subject to the provisions of the Commercial Companies Law and the Kuwaiti Commercial Law.
Second: Main Causes of Commercial Disputes in Kuwait
The causes of commercial disputes vary, most importantly:
- Ambiguity or poor drafting of commercial contracts.
- Failure to accurately define obligations and responsibilities.
- Mismanagement or exceeding authority.
- Disputes between partners over profits or management.
- Breach of execution or payment deadlines.
- Terminating contracts without legal justification.
Third: Types of Commercial Disputes
Commercial disputes include several types, many of which are handled by Al-Subaiei Group, such as:
- Commercial contract disputes.
+1 - Disputes between companies and partners.
- Commercial agency disputes.
- Bankruptcy and liquidation disputes.
- Competition and Intellectual Property rights disputes.
Fourth: Best Ways to Resolve Commercial Disputes in Kuwait
Kuwaiti law provides several means to resolve commercial disputes, depending on the nature of the dispute and the interests of the parties:
- Amicable Settlement: One of the best solutions, saving time and costs, maintaining the business relationship, and avoiding litigation complexities. It is often conducted through specialized lawyers.
- Commercial Arbitration: A common method, especially in large contracts, characterized by speed of adjudication, confidentiality, and procedural flexibility.
- Commercial Judiciary: If an amicable solution or arbitration is not possible, the specialized commercial court is resorted to, and the judicial ruling is binding and enforceable according to the law.
- Technical Expertise: In some disputes, especially accounting or technical ones, the court or parties resort to specialized experts to determine responsibilities and assess damages.
Fifth: The Lawyer’s Role in Commercial Disputes
A lawyer plays a pivotal role in:
- Studying the dispute and evaluating the legal position.
- Drafting contracts in a way that prevents future disputes.
- Representing clients in negotiation, arbitration, or litigation.
- Protecting company rights and reducing legal risks.
Sixth: Prevention of Commercial Disputes
To limit commercial disputes, it is recommended to:
- Draft clear and comprehensive contracts.
- Document all commercial transactions.
- Adhere to commercial laws and regulations.
- Seek advice from a specialized lawyer before making core decisions.
Conclusion
Commercial disputes are a natural part of the business world, but managing them well and choosing the appropriate legal means to resolve them makes a big difference in protecting commercial interests. Since 1991, Abdulaziz Al-Subaiei Law Firm has been committed to providing effective support to clients to ensure their interests are achieved with professionalism.
Contact us to serve you better: Abdulaziz Al-Subaiei Law Firm.
- Phone / WhatsApp: 50766923.
- Email: info@alsubaielawfirm.com.
- Address: Kuwait City – Al Mirqab – Mazaya Towers 2 – 1st Floor.
FAQs about Commercial Disputes in Kuwait
What are the most common commercial disputes in Kuwait?
They include disputes from commercial contracts, partner disputes, delays in payments, and unfair competition.
Can commercial disputes be resolved without going to court?
Yes, Kuwaiti law allows alternative means such as amicable settlement and commercial arbitration.
When is it recommended to resort to commercial arbitration in Kuwait?
In disputes of a technical or complex commercial nature, especially if the contract includes an arbitration clause.
What is the lawyer’s role in commercial disputes?
Studying the dispute, providing advice , representing the client, and drafting contracts legally to reduce future risks.
