Afik News 242 25.10.2017

Afik News 242 25.10.2017


Legislative Updates

October 3, 2017

An arbitration clause has a “life of its own” independent from other clauses of the contract and will apply also when a contract is terminated

An investor invested hundreds of thousands in an R&D joint venture for developing a high-tech product where the investment agreement set that a company will be incorporated in which the parties will equally hold the shares and if one of the parties will wish to withdraw the joint venture it will offer to purchase the shares of the other and in lack of agreement on the price and terms of the ...

October 8, 2017

Company manager who signed a general guarantee to debts to a car leasing company is liable even if signed for a specific lease

A car leasing company leased cars to a limited liability company and thus had the manager of the company on a general personal guarantee and even took from him details of his credit card as a security. The manager gave the details of the company credit card and in his details registered the details of the company. When the company entered liquidation, the manager contended that he is not liable ...

October 22, 2017

In a purchase of assets of a company in liquidation one may also acquire right to dispute patents

A company filed an objection to a patent application filed by Teva, but entered into liquidation proceedings, within which all its assets and rights were purchased. Teva opposed the continuance of the objection proceedings contending that, unlike a right of claim, a right to object to a patent in not alienable...

October 4, 2017

‎‎‎‎‎‎‎‎ Only a payment that is not contingent is part of the base salary for severance pay and pension

An employee worked for three years until terminated. The employee's salary included a personal premium calculated based on a percentage of sales. The employer refused to pay severance pay and pension on the premium...

September 3, 2017

Payment to an employee for non-competition upon retirement will almost always be taxes as income and not as capital gains

A CEO of a credit cards company retired and was entitled under the employment agreement to a generous sum against an obligation not to work in the field for 6 months. The Tax Authority refused to recognize such payment as capital gains and taxed it as ordinary work income...

September 28, 2017

Non-receipt of building management agreement for review in a commercial lease may indicate that no binding agreement was made

A lessor contended that prospective lessees of an office suddenly withdrew from the agreement after an oral commitment was made...