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Civil Case (Tel Aviv) 13203-10-16 Sol.E Investments & Entrepreneurship Group Ltd. v. Landau Reznieli Cafe Chain - part 26

January 7, 2025
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Sol claimed in his testimony that the discrepancy between the partnership's profit and loss statement for the months December 14 to May 15 [Exhibit N/3] and Sol's losses from August 15 onwards stemmed from incorrect data on expenses in the partnership's profit and loss statement [Exhibit N/3].

Saul testified at p.  480 of the transcript, lines 6-9: "S.  So what is the actual gap from? A.  From the reduction of expenses...  [In Exhibit N/3 - Y.G.]".

In N/3 there is a breakdown of fixed expenses such as rent, municipal taxes, electricity, and water.  Sol, like the partnership, had no effect on the amount of fixed expenses. 

As for the expenses of employee costs [the number of employees employed, and the cost of their wages], and food costs, these expenses were under the control of the café operator.  The increase in the aforementioned expense components, at the time Sol operated the café, can be explained as a result of Saul's lack of experience in operating a café.

Saul testified on this matter in his interrogation: "S.  ...  As a manager do you have control over your food cost cost ? A.  True [p.  585, lines 29-30]; "The cost of the workers [the number of employees and the cost of their wages - Y.G.] depends on you? A.  Yes" [p.  589, lines 9-10].

Fourth, Adv. Amjad represented the partnership in the concession agreement and the sale agreement.

Sol claimed that Adv. Amjad also represented Sol in the concession agreement and in the sale agreement. 

An agreement for the provision of legal services was not signed between Adv. Amjad and Sol - the concessionaire.  Adv. Amjad represented the partnership and not Sol.

In section 4912.  The concession agreement that was signed [Appendix 17 to the statement of claim] states:

"Each of the parties to the agreement consulted with an attorney on his behalf.  The concessionaire [Sol - Y.G.] declares...  Because an attorney on his behalf explained to him the contents of this agreement."

Clause 4 of the brokerage agreement, which was signed between Razi and Sol [Appendix 10 to the statement of claim], states:

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