Afik News 266 26.09.2018

Afik News 266 26.09.2018


Legislative Updates

September 13, 2018

Use of company assets for a private project in beach of the founders agreement does not create a partnership in the project but a right to compensation

An organizer of real-estate acquisition groups and a businessman entered a founders agreement to establish a company and cooperate in projects of the organization of real estate acquisition groups. After a while, the parties signed a separation agreement with the aim of ending the cooperation and set an agreed frame of distribution of the profits from the project conducted by the company and ...

August 7, 2018

A wide limitation of competition in a franchise agreement may be unenforceable due to contradicting public policy

A group of franchisees of an animals' products chain store has canceled their franchise agreements after their stores failed to show the profits they thought they were supposed to yield, but the chain claimed that under the franchise agreement, in such as case, the franchisees could not open competing stores...

August 16, 2018

Clients brought by an employee are not the employee’s clients but belong to the employer

A CEO, whom did not sign a non-competition clause in her employment agreement, resigned. After leaving, she started a competing business and on her own initiative approached clients of her former employer, according to lists she had, that included information about the clients...

August 28, 2018

When the balance of power between the parties to an agreement is similar, an international jurisdiction clause outside of Israel is not discriminatory

An Israeli cooperative association and a Dutch company entered into an agreement for the supply of goods, which included a foreign jurisdictional stipulation according to which disputes between the parties are to be resolved in the Hague (the Netherlands) Courts and under Dutch law...

September 6, 2018

The opening of the tender box prior to the tender’s closing time may cause the tender to be canceled

In each of three tenders issued by the Ministry of Construction and Housing due to a clerical error three different hours for tender closing appeared: the instruction page stated that the bids must be submitted by 10:00, at the bottom of the instructions page, and in the press publication it was noted that the time was 11:00. The tender's appendix stated the hour of submission as 12:00, an hour ...

September 5, 2018

Not checking the rights in land beyond the registry may cancel the Marché Ouvert protection

Four brothers owned a company that engaged in the import and marketing of food products.  The company also used land that belonged to the brothers. When one of the brothers retired from the activity, he sold the other brothers his rights in the land, signed an irrevocable power of attorney and even reported the transaction to the Tax Authority, but the transaction was not recorded. Shortly ...