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Panidar Investment, Development, and Building Co. v. Castro

Rehearing 7/81, 37(4) PD 673 (1983)

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Panidar Investment, Development, and Building Co. v. Castro

Israel Supreme Court
Rehearing 7/81, 37(4) PD 673 (1983)

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Facts

Castro (plaintiff) and Panidar Investment, Development, and Building Co. (the Panidar company) (defendant) entered into a contract under which the Panidar company agreed to build and sell an apartment to Castro. Joseph Panidar (defendant), an owner of the Panidar company, negotiated the contract on behalf of his company but was not a party to the final contract. Castro gave the Panidar company a large sum of money pursuant to the contract. However, the Panidar company did not actually own the property on which the apartment was to be constructed. Castro sued the Panidar company and Joseph for damages based on Joseph’s failure to conduct the negotiations in good faith. The lower court issued a judgment holding Joseph personally liable to Castro, and the Israel Supreme Court affirmed. Joseph petitioned the Supreme Court for a rehearing on the issue of whether Joseph—who was not a party to the contract—could be held liable for failure to conduct negotiations in good faith. The Supreme Court granted the request for a rehearing to consider this particular issue.

Rule of Law

Issue

Holding and Reasoning (Shamgar, C.J.)

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