APPLICATION OF SUBSTANTIVE LAW IN UNIFIED CONTRACTS BETWEEN MULTINATIONAL COMPANIES AND CONSUMERS IN ISRAEL

Abstract

Abstract. The article highlights the application of substantive law in unified contracts between multinational companies and consumers in Israel. The accepted criterion for the choice of law in contract law is the test of the consent of the parties, and in its absence, the test of “closest connection”. When the outcome of the test may be influenced by broader policy considerations that serve the general regulatory interest in applying the “closest connection” test, the nature and weight of the connections to be tested may vary, of course, according to the particular statutes whose applicability is being tested and according to the special circumstances of the contract. As a general rule, this is the study of the connection of a contract with a certain law, paying attention to the place where the contract was concluded or where negotiations were held before the conclusion of the contract, the place of performance of the contract, the parties to the contract (their place of residence, citizenship, registration and business activity), language of the contract, currency of payment, place of tax payment and intentions of the parties regarding the choice of law in other areas of their relationship. In identifying these affinities and determining their weight, there is no obstacle for the court to take into account the general political considerations of the legal system and the basic principles of the contractual field for which the choice of law is required. In the absence of concrete kinship, the court may resort to the objective kinship of the contract, that is: the law applicable to similar contracts, between similar parties and under similar circumstances. Also, the dynamics of legal decisions that influenced the development of the application of substantive law in unified contracts of the Israeli justice system are shown, which is structured in such a way that each case depends on the subjective decision of an individual judge, which, according to the author, leads to total chaos in the legal system. Instead, the unification of Israeli legislation with international norms in the field of international public and private law could bring clarity, transparency, unambiguity and significantly ease the burden of the Israeli justice system.