Terminating a contract without a time limit which is based on personal trust does not entitle compensation

An accountant's work was terminated by a longtime client even though their engagement was automatically renewed each year. The accountant demanded compensation of ILS 7,500,000, reflecting a loss of future revenues for a period of 16 years ahead.
The Court rejected most of the claim and held that the accountant was entitled to receive only fees for services already performed. Relations contract is a contract that is intended to regulate a long-lasting and long-term relationship when the engagement is usually not time limited. Relations contract are based on personal relationship between the parties, is not a "Catholic wedding" and may be terminated by reasonable prior notice if done in good faith and for a fair and justify reason. Here, the accountant provided consulting services that require a great deal of personal trust for about 30 years and earned an annual fee of approximately ILS 600,000 per annum, all without a written agreement. The engagement was terminated, inter alia, after the accountant refused to provide details about his work and the number of hours spent in each field. Because this is a legitimate demand made by the client and the termination of the contractual relationship was reasonable and justified, there is no place to award millions for future revenue loss and the accountant is only entitled to payment for work performed until the date the legal relationship has terminated.