Can I sue a supplier in Israel for breach of contract when they failed to deliver goods on time?

In Israel a contract with a fixed‑delivery date is enforceable under the Contracts Law 1973 and the parties’ penalty (liquidated‑damages) clause is generally upheld unless the amount is “extravagant or unconscionable,” so you can first send a formal demand (notice of breach) specifying the missed delivery date, the exact loss you incurred and invoking the contractual penalty; if the supplier does not pay within the contractual cure period (often 10‑30 days), you may file a claim in the competent Magistrate Court (if the amount is ≤ 2.5 million ₪) or District Court (if higher), asking for the stipulated penalty plus any proven consequential damages (e.g., lost profit) and interest under the Interest Law 1968; the court will usually order payment of the liquidated sum without requiring proof of actual loss, but you must still substantiate any extra damages you seek; the typical timeline is 3‑6 months from filing to judgment (shorter in the Magistrate Court) and the main costs are the court filing fee (≈ 0.5 % of the claim) plus attorney fees (often billed hourly or on a contingency basis for commercial disputes); if the judgment is not satisfied you can enforce it through a writ of execution (executoria) to seize the supplier’s assets or bank accounts, and you may also request a provisional attachment (הוראת עיקול) during the lawsuit to protect the amount owed.