Law and Compliance in Israel

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Business Contract

General Observation
In principle, a contract can be concluded orally. This is, for example, made between diamond merchants, and in purchase or products or goods in a store.
Law Applicable to the Contract
The contracts are not always written. In any case, in Israel, there is a contract after offer by one party and its acceptance by the other, as soon as sufficient details are exchanged. It is thus necessary to be wise at the time of negotiations and not to promise anything without thinking. If the contract is written, it is paramount to insert all the conditions, without which it will be difficult to fulfill them later. It should be emphasized that even during the negotiations, the parties should show good faith and hence should not cheat the other party. Specially in case of an important contract (for example rent or puchase of building), it is wise to take advice from an advocate and do not fall into a trap that is sometimes hidden in the standard contracts; remember that in Israel it is for the advocates to draw them up (even for buildings).
Advisable Incoterms
It is preferable to choose an FOB or CIF incoterm. Avoid EXW, if you do not want to deal with transport on Israeli territory which can turn out to be complicated.
Language of Domestic Contract
The written contract can be drawn in Hebrew or in any other language, by the parties themselves or by a third party, in Israel or abroad, between two or more parties, contractual freedom remains as the basic principle. Which means that the parties are free to insert any condition, under sole reserve of their legality in a broad sense.
Other Laws Which Can Be Used in Domestic Contracts

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Legal Framework of Business

Equity of Judgments

Independence of Justice
The judicial power is largely independent in Israel and the guarantees of procedure are generally respected.
Equal Treatment of Nationals and Foreigners
Foreign nationals can be expected to benefit from a equitable legal process.
The Language of Justice
The legal language of the country is Hebrew but Arabic is also used officially by the Arab minorities of the country .
Recourse to an Interpreter
Legal Similarities
Israel does not have written constitution. Certain functions of the constitution are fulfilled by Declaration of Establishment (1948), the Basic laws of the parliament and the Israeli citizenship law. The legal system is a blend of Common English Law, British Mandate Regulations and Jewish Christian and Muslim rights as far as the personal status is concerned.Israel no longer accepts the compulsory jurisdiction of ICJ.

The Different Legal Codes

Company law Common Investment Company law, 5754-1994,
Law on commercial practices,
Company law
Labor Law Law on collective conventions, Employment law
Contract and property rights Contract law of 1964, Laws on intellectual property, Absentees Property Law
Consumer's right Consumer protection law
Checking National Laws Online
Lexadin, the world law guide
Other Useful Resources
Ministry of Justice
Ministry of Labor
Israel Antitrust Authority
Country Guides
Lexmundi, Guide to doing business in Israel: legal system.

Find Legal Experts in Israel on

The Jurisdictions

Differences related to labor Conciliation board

Court Officials

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