A party to a joint venture demanded an accounting from his partner, claiming entitlement to 20% of the profits. The partner refused to disclose the documents, arguing that no binding agreement had been signed between them.
The Court accepted the claim and held that a special relationship existed between the parties, establishing a right to an accounting order. Israeli law states that a contract may be made orally, in writing, or in any other form, unless a specific form is a condition for its validity by law or agreement. In a claim for an accounting order, the plaintiff must first prove a special relationship, including agency, authorization, partnership, or trust. A joint venture is characterized by cooperation in a defined initiative, resource sharing, joint control, and profit sharing, and does not require formal registration. In this case, the parties acted informally based on mutual trust, with an oral agreement and a division of roles for the benefit of the venture. The exclusive control of one party over the financial aspects and the trust between the parties created a special relationship that justifies issuing an order for data disclosure. Therefore, the claim was accepted and the partner in the joint venture is to disclose documents and data to the other party.