Afik News 238 30.08.2017

Afik News 238 30.08.2017


Legislative Updates

August 3, 2017

Cooperative societies are subject to principles of corporate law mutatis mutandis

A cooperative society executed a joint venture agreement with an investor under which the society grows and sell calves and at the end of each year the investor receives a fixed annual payment in addition to a fixed yield on the principle of the investment.  The society ceased to pay and a claim was filed both against it and personally against the general manager who is also a member of the ...

July 31, 2017

The dispatch of notice of exercising of an option creates a binding agreement even if given without intent to follow

A shareholder’s agreement set an option to one shareholder to purchase the other's shares within 3 months and at a set price subject to giving an exercise notice. The shareholder exercise the option but later refused to consummate the purchase arguing that the mere purpose of the exercise was to prove fraudulent acts by the other upon purchase of the company...

July 24, 2017

‎‎‎‎‎‎‎‎ Frame agreements are subject to a higher duty of good faith to enable flexibility for the parties to manage their relationship

A contracting company executed a framework agreement for the execution of the works, which was extended from time to time. As part of the negotiations for the extension of the agreement discounts were agreed and granted but about two months later, all work orders were frozen by exercising a clause in the framework agreement that does not require making any work orders...

August 14, 2017

‎‎‎‎‎‎‎‎ A Chinese judgment may be enforced in Israel despite the lack of a treaty to that end

An Israeli citizen and a Chinese company signed an agreement that was terminated. Later, the Chinese company filed a claim in China against the Israeli - in which a verdict was given against the Israeli. The Chinese company sought to enforce the verdict in Israel...

August 9, 2017

A Lessor need disclose to a potential lessee intent to sell the asset

Parties negotiated a lease agreement but the lease was not signed as the lessor decided to sell the property and withdrew from the negotiation and later withdrew from that intent but the parties did note reach an agreement as to the terms of the lease...

August 6, 2017

When a contract includes a clause enabling termination upon on receipt of a third-party approval the party charged with retrieving the approval may also terminate it

An entrepreneur entered into an agreement with purchasers of apartments. Under the agreement it was set that the entrepreneur will act to obtain a building permit and if no building permit is retrieved within the set period, the parties to the agreement may terminate it. No building permit was received within the set period and the entrepreneur terminated the agreement...