A German supplier cancelled a distribution agreement with an Israeli distributor who for years was the sole distributor of its products and the distributor sued for damages claiming to be the exclusive distributor.
The Court held that although the distributor was the sole distributor of the supplier's products in Israel, this does not indicate that it was also the exclusive distributor. As long as the parties did not enter into an agreement expressly setting the exclusivity, the supplier may freely transact with any person or cancel the agreement. Thus, the claim was rejected.