Caselaw

Civil Case (Rishon LeZion) 54046-02-19 Kioskey Marketing (2004) Ltd. v. Lid Technologies Ltd. - part 2

June 4, 2025
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            In the framework of the aforementioned price quote, it was noted that the line includes Five Assemblies:

Assemblage A - Separation, folding and cutting paper for rolling cigarettes, which costs NIS 516,000.

Complex B - Cartonata - the packaging of cigarette paper in a carton, which costs 765,000 NIS.

Complex C - A unit for separating and gluing the filter packaging to the paper folding system, which costs - 249,000 NIS.

Complex D - Filter case folding system.

Complex E - Folding system, including TUCK IN For the final packaging.  The cost of assemblies 4-5 together           - 620,000 NIS.

The price quote for the production of the machine includes details in relation to each assembly, including the agreed production rate.  It was also noted that the price does not include tax and transportation appeals, the payment terms were specified and it was noted that the delivery date of the machine is about 8 months from the date of receipt of the order, advance and samples.

[Note: In paragraph 16 of the amended statement of claim, it was noted that the price quote for the production of the machine was sent from the defendant to the plaintiff on March 8, 2015, but the said date does not appear on the document.  In addition, Appendix C was attached to the amended statement of claim, which was claimed to be the price quote sent on March 8, 2015, but this is an appendix that appears to be truncated.  It appears that the full document is the first 3 pages of Appendix 4 to Hamami's first affidavit of August 17, 2020).

  1. The Agreement for the Order of Complex A - On March 12, 2015, the parties entered into a production agreement Assemblage A As detailed in the price quote for the production of the machine. The title of the said agreement is "Tax Order Agreement R6946 Separation, folding and cutting paper system for rolling cigarettes INTERLEAVING AND CUTTING UNIT(See: Appendix D to the amended statement of claim).  In accordance with the said agreement, the defendant undertook to manufacture the first assembly in the machine, which was intended to manufacture the rolling paper packaging industrially, in exchange for a sum of NIS 516,000.  In the said agreement, the terms of payment of the consideration were determined – 50% of the consideration at the time of the order; 40% of the consideration at the time of delivery; and an additional 10% after the installation and training of the plaintiff's Complex A.  The said agreement also stipulates that the supply of Complex A will be carried out within "approximately 4 months from the date of receipt of the order, advance payment, and samples."  Finally, in the said agreement, it was stated as follows: "The folding and cutting system of the rolling paper according to order R6949 This is the first part of a complete line for rolling paper packaging for cigarettes according to a suggestion R6941B and will be manufactured in such a way that it can connect in the future to additional assemblies as detailed in the proposal R6941B".

III.       Appendix of the Understandings - On November 24, 2015, the parties signed an "Appendix of Understandings to the Agreement".  This appendix appears as a continuation of the price quote for the production of the machine dated March 8, 2015, detailing "Updates to the price quote for a complete line for cigarette rolling paper packaging + filter package".

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