SCA 1558/2019 issued on 17/07/2019
This case involved a claim for compensation because of breach of an agency contract. There was evidence of a partnership contract which stated the amounts would be paid to that company.
Background
A company filed a case against another company before the court. The company requested the court to order the other company to pay $1000000 and compensation. The company said that they had agreed to be the sales agent of the other company but the latter had failed to commit to their obligations.
The other company claimed that the two parties had agreed upon another contract under which the two parties would be partners in a company. The other company said that the contract stipulated that the amount would be paid to the new company.
Decision
The court said that the case documents revealed that the other company had provided the court with the documents that prove the existence of another partnership contract between the two parties.
The court dismissed the case.
The Court of Appeal – Jeddah upheld the ruling based on same grounds.