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Withdrawing a bid after being declared the winner may grant the tender committee the authority to forfeit the bid guarantee
Public Law, Elections Law and Tenders
Dispute Resolution
A bidder that won an Israel Land Authority tender for a lease of a plot withdrew its bid, contending that essential information regarding the scope of building rights had been concealed. The tender committee forfeited ILS 400,000 of the bid guarantee (approximately 25% of the total guarantee). The Court rejected the petition and held that […]
Contractual liquidated damages that are above 10-15% of the contract value may not be enforced
Commercial, Banking and Financial
Real estate in Israel and around the world
Dispute Resolution
A Seller of rights in a plot (acquired from a receiver) undertook to complete the recording of the rights in his name within 40 days but the recording was affected only after six years. The purchasers demanded the full liquidated damages stipulated in the contract (ILS 150,000), which constituted approximately 28% of the transaction value. […]
A municipality may sometimes be obligated to pay a supplier even if no written agreement was signed
Public Law, Elections Law and Tenders
Dispute Resolution
A municipality refused to compensate a supplier for works performed in two projects at the order of the municipality, amounting to approximately ILS 850,000 due to the fact that no formal signed agreement exists, due to an election period and changes in the local administration. The Court partially accepted the claim and ordered the municipality […]
When the dispute remains alive, a claim for offset can be raised even after the cause of action’s statute of limitation period has expired
Real estate in Israel and around the world
Public Law, Elections Law and Tenders
Dispute Resolution
A company sought to offset royalty amounts that were collected in excess from future royalties to the Israel Land Authority. This was done in light of the fact that the statute of limitation period for the cause of action for the collection in excess expired and the Israel Land Authority knew that the company maintains […]