Caselaw

Civil Appeal (Haifa) 33822-11-25 Dreadlocks Marketing Ltd. vs. Yehiel Kedem - part 2

February 16, 2026
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Judge A.  Canaan:

  1. I have examined the opinion of my colleague Justice Attias and I cannot join the conclusion she reached.

The appeal deals with a situation in which an agency agreement was signed for a fixed period of five years, with an option to extend the period for another five years.  At the end of the original period, the parties continued the contractual relationship, with the determination that no notice was given to extend the period of the agreement.  During the option period, and two years before its expiration, the vendor announced the termination of the agreement within 30 days.  Is the agent entitled to an award of advance notice fees under the General Contracts Law or in accordance with the formula set forth in Section 4 of the Agency Contract Law (Commercial Agent and Supplier), 5772-2012 (hereinafter: the Law).

  1. In short, the trial court ruled that the respondent did not give written notice of the exercise of the option, but the parties continued the contractual relationship, and according to him, the agreement was extended for an indefinite period. The trial court further ruled that it is possible to infer from the arrangement set forth in the law regarding super agency franchise agreements.  In any event, the General Contract Law establishes a similar arrangement, which allows for the termination of unlimited agreements within a reasonable time from the moment the notice is given.  Therefore, the trial court did not rule on the question of whether the relationship that existed between the warring parties is an agency relationship, to which the provisions of the law apply, but rather awarded advance notice fees by virtue of the general law.  Therefore, the trial court ruled that whether it is an inference by virtue of the law or by virtue of the laws of general contracts, the respondent is entitled to compensation for advance notice.  My colleague Justice Attias confirmed the rulings of the trial court.  On this matter, I have a different opinion.

In my opinion, for the purpose of hearing the appeal, the following questions must be decided: Does accepting the claim based on the general law constitute a ruling on the basis of a cause of action that was not claimed? Even if it is possible to rule on the claim on the basis of a cause that was not claimed, is the plaintiff entitled to compensation of advance notice fees under the general law? Is the relationship between the parties an agency relationship within the meaning of the law? If the answer is yes, Is the respondent entitled to advance notice fees in accordance with section 4 of the law?

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