Caselaw

Civil Case (Tel Aviv) 13203-10-16 Sol.E Investments & Entrepreneurship Group Ltd. v. Landau Reznieli Cafe Chain - part 8

January 7, 2025
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Sol and Sol would not have entered into a deal with the Rothschild Café Partnership, if it had not been possible for the municipality to issue a business license to manage the café in Herzliya.  Sol and Sol would not have paid ILS 1,186,000 in the transaction in the concession agreement and in the sale agreement if it had not been possible for the municipality to issue a business license to manage the café in Herzliya.

In order to obtain a business license for the café in Herzliya, it was necessary to prove the existence of two toilet cubicles and a warehouse.  On the ground floor of the café, which was rented by the Rothschild Cafe Partnership Battery Properties Ltd., there was one toilet cubicle. 

For the purpose of obtaining a business license by Sol, there was a missing: a.  An additional toilet cubicle.  B.  Warehouse

Yakubov in his application for a business license that he submitted [Exhibit N/22], prior to the transaction with Sol, declared that the café has a floor above the café, the first floor of the building: a toilet with an area of 2.40 square meters, and a warehouse with an area of 15.66 square meters.  On the basis of this representation, Yakubov received a business license, prior to executing the transaction with Sol. 

Yakubov claimed in the lawsuit that the partnership was moving on to signing the agreements with Sol, an oral lease agreement with Moshe Zilberberg, one of the owners of the first floor of the building, which allowed the café to make use of the warehouse and toilets on the first floor, for which rent of ILS 2,000 was paid once a quarter. 

Yakubov testified at p.  882, line 33 to p.  883, line 9: "We had oral agreements with Moshe [Moshe Zilberberg - Y.G.]...  That he would rent us the storage room, and allow us to go upstairs to the bathroom [on the first floor of the building - Y.G.] in exchange for the sum...  Around ILS 2,000 per quarter."

The owners of the toilets and warehouse on the first floor were not the owners who rented the café on the ground floor to Yakubov. 

  1. From the evidence that was brought before the court, it can be determined that on June 16, 2016, Sol lawfully canceled the franchise agreement and the sale agreement, as presented to Sol, moving to the signing of the franchise agreement and the sale agreement. Misrepresentation, that the partnership has a rental right that allows the café to use the toilet and the warehouse on the first floor of the building above the café. 

Yakubov testified at p.  882, line 33 to p.  883, line 9: "We had oral agreements with Moshe [Moshe Zilberberg - Y.G.]...  That he would rent us the storage room, and allow us to go upstairs to the bathroom [on the first floor of the building - Y.G.] in exchange for the sum...  Around ILS 2,000 per quarter."

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