All agreements must be in writing and set out the specific conditions of the agreement. Agreements must be made in good faith and must adhere to competition law as well as Kuwait's principles of morality.

This Practice Note covers:

• requirements for non-Kuwaitis wishing to set up a commercial contract;

• different types of commercial contracts;

• legal obligations for an agreement;

• registration of agreements;

• income tax; and

• good faith and competition law.

• Agent: A Kuwaiti citizen who acts, by agreement and for a fee or commission, on behalf of a principal to act as liaison, to negotiate, market, licensee, franchisee, distribute and sell products, goods or services in a specified territory in Kuwait.

• Distributor: A Kuwaiti citizen who, by agreement and for a fee or commission, acts on behalf of a principal to store, market and distribute imported products, goods or services into a specified territory in Kuwait.

• Commercial agency: A contract between an agent or distributor and a principal, where the principal has engaged the services of the agent or distributor in the State of Kuwait, for a profit or commission, to act on their behalf to sell, promote, and distribute goods, products or services.