A person provided brokerage services to another as part of a transaction to sell shares, but the parties did not agree on the brokerage commission rate, only that it would not exceed ILS 1 million.
The Court held that the broker is entitled to a commission of 1% of the transaction amount. A right to remuneration under a contract arises when the service is provided according to an agreement entered into between a provider and the recipient of the service, where the regulation of remuneration can be explicit but can also be implicit. The latter is when the contract implies that the intention is that the service provider shall be paid consideration, without explaining the mechanism by which the remuneration will be determined. In such case, the method of determining remuneration must be supplemented by a practice or dispositive supplementary provisions. Here, no express agreement was signed between the parties, and no consideration was determined, but brokerage services were provided. Therefore, the remuneration mechanism must be supplemented subject to the industry's custom, which is a commission of 1% of the transaction amount.