Israeli Contract Law — Recent Trends and Evaluation

Abstract

Two questions are central in the law of contracts: first, what are the conditions necessary to the formation of a contract; second, what is the scope of the contractual obligation. The first question deals with the two basic requirements for the formation of a contract — offer and acceptance, whose substantive components are the intention to form a legal obligation and definiteness. It also deals with the substantive requirement of writing, in those classes of contracts in which it is required, and the requirement of consideration, in those legal systems in which it exists. The second question deals with those rules which determine the remedies for breach of contract such as specific performance, damages and restitution. In this article I shall try to identify and evaluate recent trends in Israeli law concerning these questions, as demonstrated by decisions of the Israeli Supreme Court, and to evaluate these trends by measuring their consistency with one another.