SBG 211/2014

This case involved a request to nullify a partnership contract. Although procedures had not been completed this could not be invoked against others.

Background

A claimant requested the court to nullify the company contract signed with the defendant because he did not complete the procedures for establishment and did not pay his share in the capital. The claimant also requested the defendant pay 380,000 riyals.

The defendant said that this was incorrect and that he did do some work based on a partnership contract and spent money on establishment procedures. He added that if the claimant wanted to end the partnership, the contract provided for this. Under the contract, the claimant could end the partnership by sending a recorded letter to liquidate the accounts after six months from the date of the recoded letter. The defendant asked the court to dismiss the case.

Decision