Afik News 247 03.01.2017

Afik News 247 03.01.2017


Legislative Updates

December 21, 2017

A manager who transacted knowing that the company will not be able to manage the transaction will be personally liable.

A sole shareholder of a company ordered goods from another company in high amounts while creating a debt in respect of the goods supplied. The supplier sought to pierce the corporate veil and attribute the company's debts to its only shareholder and manager, arguing that he transacted knowing that the company will not be able to pay for the goods supplied...

December 13, 2017

A liquidated damages clause based on commercial-economic logic will be enforced even if one of the parties entered liquidation proceedings

A car importer entered into a contract with the Better Place company for the provision of services for vehicles to be imported by it and set minimum quantities of vehicles to be handled each year and liquidated damages if the number falls below such annual quantities. When Better Place entered into liquidation proceedings the importer filed a debt claim, including in respect of the liquidated ...

January 14, 2017

An overreaching and generic drafting of a non-competition clause may render it unenforceable

An employee, who was employed for 15 years in a senior position, resigned. The employer contended that the employee commenced working in a competing company and thus moved the Court for an injunction prohibiting him from working for the competitor until the end of two years from the date of termination because of a non-competition clause in the agreement...

January 2, 2018

The general permit to trade with Iraq will be in force until end of 2018

Israeli law prohibits trade with enemy countries, which prohibition applies to both direct and indirect trade with an enemy country. The scope of the prohibition is very broad and includes any economic activity with the enemy or to the enemy's advantage, without any exception. There are currently four countries only that are defined as "enemy countries": Iraq, Iran, Syria and Lebanon, but as to ...

December 5, 2017

An agreement defining relations between parties will prevail over a later agreement dealing with a specific matter

A shareholder in a company authorized a competitor to use a trademark of the company. Following the demise of the shareholder, the company filed a claim due to the use of the trademark...

December 19, 2017

One may not submit a tender offer with a straw-man when the one to perform the tender work does not fulfill the preconditions of the tender

Two parties established a joint company to submit an offer for a tender of the Israeli National Security, which threshold conditions thereof only one side was able to meet. After a number of years the parties separated and the separation agreement established a stipulation of non-competition between the parties, so that each party deals with a particular area and can not deal with the areas that ...

December 14, 2017

A tenant in a condominium who makes a repair in the common property without prior approval is not entitled to reimbursement of expenses

A tenant in a condominium performed a repair in the common property and demanded reimbursement...