A Representative:

Under Israeli agency law, your representative is your attorney-in-fact, "an agent" and his acts could bind you even beyond his original authority if any. That could happen if there's a showing of apparent authority granted to him even if he has limited or no powers under your joint agreement.

A Distributor:

Distributors buy the goods to resell to wholesalers or to the end buyers. They are expected to launch marketing and advertising campaigns, and therefore are likely to require exclusivity and a long-term agreement.

How to End Business Relationship and Avoid Litigation?

Insofar you cannot prevent the sun from rising in the East, you cannot prevent people from filing frivolous lawsuits. Careful drafting of the agreement and fairness in conducting your relationship will make it more difficult for a frivolous lawsuit to be successful. Every contract should have exit and escape clauses, and more so when parties from two different cultures join in a contract.

The following brief was prepared by Haggai Carmon, from Carmon & Carmon Law Office. To view the brief in full, simply fill in the information below and hit "Submit".