EGGED CO-OPERATIVE SOCIETY LTD Vs. LEVI GEFFEN

JUDGEMENT

(1.) This is an appeal from the judgment of the Supreme Court of Palestine sitting as a Court of appeal dated 30-11-1943, reversing the judgment of the District Court of Tel Aviv dated 30-6-1943, and ordering judgment to be entered for the respondent for L.P. 500 with cost.

(2.) In the year 1940, the appellants wished to acquire the majority of the shares in a company called Abir Company Ltd. The respondent was one of the share-holders in that company, and the appellants thought that he could influence other share-holders. Accordingly an agreement was entered into between the appellants and the respondent, the terms of which are to be found in a letter from the appellants to their solicitor, Dr. Ishayevitz, which was admittedly shown to the respondent. The letter is Ex. D-2, and contained the following provision : "We hereby instruct you in your capacity as our advocate to communicate to Mr. Levi Geffen on our behalf that after we shall have procured the majority of shares in the Abir Company Ltd., either in our name or in the name of a trustee on our behalf, we shall pay him an amount of L. P. 250 for his help in procuring the majority of these shares." After some other provisions not now material to be stated, the letter continued : "We shall pay him a further amount of L. P. 250 after completion of all the matters between ourselves and the Cohenstak Brothers who are the owners of the remaining shares in the above company." It is not now in dispute that the amount which became payable under this letter was L.P.500.

(3.) On 7-11-1941, a memorandum of agreement, which is Ex. D-1, was entered into between the parties whereby the appellants agreed to pay the respondent L.P. 201 for his shares in the Abir Company Ltd., and the respondent agreed to perform various services in connection with such company and the transfer of its shares to the appellants.