The rule is that even given a result according to which the contract was lawfully cancelled, the arbitration clause remains in effect.
"Quite a few times a question arises regarding the validity of an arbitration clause that appears in a general agreement that has expired. The expiration of the General Agreement may occur under various circumstances. Thus, for example, the general agreement can expire in circumstances in which the agreement was breached and canceled. In such a case, the arbitration clause will not expire, since it can be assumed that the arbitration clause is intended precisely for such a case, in which the litigation relates to a breach of contract" (LCA 4986/08 TYCO BUILDING SERVICES V. ALBEX VIDEO LTD., PARAGRAPH 32 OF JUDGE DANZIGER'S JUDGMENT, APRIL 12, 2010).
And:
"There are clauses in the contract that are intended to fulfill the purpose of the contract, such as payment of the consideration or the date of delivery of the sale, and there are clauses in the contract that are intended to regulate the legal relationship between the parties in the event that the contract is terminated, such as an agreed compensation clause or an arbitration clause. These contractual clauses continue to apply, by their very nature, even after the cancellation of the contract and regardless of the question of the validity of the contract" (ibid., the judgment of President Amit).
- The respondents even claim that the litigation should be held specifically in court because they claim fraud, they are fraudulent in providing contractual consideration in the form of "Shares of the Applicant whose value fell to zero within a short time after they were delisted from trading on the TASE", are a fraud against the investors in the parent company that included the presentation of "A cover of technological innovation that was not at all".
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Controlling the dome "... The principle is that as a rule, the consent of the parties must be validated and the arbitration agreement must be upheld. In accordance with this principle, weighty considerations are required to justify the rejection of a request to appoint an arbitrator where there is an explicit arbitration agreement between the parties" (LCA 2561/15 Brown v. Gonshiorovsky, para. 9, October 26, 2015).