The Tel Aviv District Court has upheld a claim brought by Hagag Group, ruling that the agreement executed between the parties constituted a contract for the benefit of a third party, thereby granting Hagag Group a direct right to receive its share of the consideration.

Under the judgment, the defendant was ordered to pay approximately NIS 3 million to Hagag Group, together with interest and legal costs in the amount of NIS 150,000.

Beyond the financial outcome, the judgment includes important findings regarding the status of beneficiaries under contracts for the benefit of third parties, the effect of subsequent agreements that were not disclosed to such beneficiaries, and the raising of unsubstantiated set-off claims.

Hagag Group was represented by Advs. Ala Diab and Ortal Far of our firm.

For further coverage:Calcalist coverage of the judgment