Israel: General contract terms in Israel

AutorGabriela Shalev
CargoLaw Faculty University Hebraïque Jerusalem
Páginas262-269
RPDC, Dezembro de 2013, n.º 76
262
RPDC
Revista Portuguesa
de Direito do Consumo
ISRAEL
GENERAL CONTRACT TERMS IN ISRAEL
Gabriela SHALEV
Law Faculty University Hebraïque
Jerusalem
Introduction
General Contract Terms in Israel are governed mainly by the Standard Contracts Law,
1982. Alongside with this law general contract law applies to general contract terms. The
provisions of the Standard Contract Law coexists with the general contract law [or as the
standard law puts it: “do not derogate from any other law according to which a contract
or any term thereof may be void or voidable” (section 24).] Therefore, Israeli courts are
thus empowered to use various judicial instruments in order to invalidate clauses in
standard contracts. These instruments apply together with the special cause of action
provided by the Law of Standard Contracts, namely that of “prejudice to the customer”.
Thus, regular contract doctrines, especially those aimed at controlling contract-power,
still apply to general terms. Those doctrines are mainly “public policy” and “good faith”.
The doctrine of public policy in Israeli law is rooted in section 30 of the general
contracts law, which states, inter alia that a contract contrary to public policy is void.
This provision was invoked by the supreme court in the past in order to annul an
exemption clause in a standard contract for an apartment-sale. Chief Justice Shamgar
annuled as contrary to public policy a contract term that exempted the contractor from
its responsibilities concerning the apartment condition upon delivery. It seems that the
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economic transactions, like building contracts. On the other hand, exemption clauses
molde def 76 novo.indd 262 28-07-2014 12:46:03

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