Afik News 206 08.06.2016

Afik News 206 08.06.2016

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Legislative Updates

May 16, 2016

When urgent actions are required in a merger the Antitrust Commissioner’s approval must be sought

A stationary supplier executed an agreement with a distressed stationary chain, whom such supplier was its main creditor, to transfer the managing of its shops to the supplier for 7 years against monthly payment with an annual minimum payment.  The agreement was contingent on the Antitrust Commissioner’s approval as required under law but the first year annual payment was paid promptly as a loan ...

May 17, 2016

Termination of an investment agreement due to breach does not require exact stipulation of the reason

An investor in a company terminated the agreement and demanded repayment of amounts paid after discovering that a material client was diverted to a competing business of the control holder.  In retrospect it was found that that specific client was not diverted but another was...

May 29, 2016

An attorney incorporating tax structures for a client may be obligated to expose the details of the client

A lawyer incorporating international tax structures for clients was demanded by the Israeli tax authorities to disclose documents relating to companies incorporated for clients, specifically corporate documents, bank account opening documents and credit card clearing accounts documents and personal documents of people related thereto and exposing the identity of the beneficial owners of such ...

May 11, 2015

One cannot arbitrate issues related to non-dispositive employee rights

A religious Kindergarten teacher was dismissed while in advanced stages of pregnancy and agreed to arbitrate the issue before the Rabbinical Court which granted an arbitration award. The kindergarten teacher did not agree to the award and filed a claim with the Labor Court which partially accepted the claim. The case reached the High Court of Justice after the employer argued that the existence of...

May 23, 2016

The parol evidence rule will apply if a contract clause applies it

A construction company agreed with a purchaser of an apartment within a registration form that he will be assigned an additional parking, a disabled parking, beyond the ordinary parking place in the attributed to all apartments but the signed contract did not include such provision. The purchaser filed a claim against the company based on the registration form...

May 20, 2016

Interpretation of contract in lack of custom between the parties shall be pursuant to customary terms in the market

A farmer signed a contract with a packager for export of pomegranates.  Although a field check, prior to picking of the fruit, showed that the fruit was clean, a check of the Ministry of Agriculture at the packager showed that some of the fruits were infested with fruit fly and thus the fruits were disqualified for export and sold in Israel at a materially lower price.  The farmer contended that ...

May 4, 2016

Filing a motion for a status of a foreign spouse only after arrest is ‎grounds for its rejection

After a foreign spouse of an Israeli citizen was arrested by the authorities the couple moved for her status but the motion was rejected. The court held that it will intervene only in cases of unreasonableness. Where a motion for status of spouses is filed only after the arrest of the foreign spouse this will be deemed a motion not filed in good faith which is sufficient grounds for rejection. ...

May 31, 2016

A municipality that was dilatory to collect a debt cannot refuse to issue a ‎document required by the ‎Land Registration Office

A municipality refused to issue a document required for transfer of rights in land at the Land Registry on the grounds that there exists an old debt for municipal taxes and levies...

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