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- P'ninat Mishpat
Ruling: Witness 1 was the representative of the yishuv for interactions with obd. He testified that obd did not succeed in getting the price it expected from consumers, and so they did not have money to keep their commitments to the farmers. While some farmers abandoned the arrangement earlier, that was a risky step as prices were lower than expected across the board. An expert hired by beit din explained how the circumstances left def little choice other than to switch to heter mechira earlier; the main reason they did not was def’s religious principles.
The contract between pl and def can only be read as an investment, not a loan. This is clear from the language and the fact that pl took an expensive loan from the bank to finance it; this cannot be explained by good intentions alone. An investment is not guaranteed like a loan.
Regarding agreeing to give the produce for less than had been discussed, the Shulchan Aruch (Choshen Mishpat 185:1) says that an agent may not sell at a lower price than the owner agreed, even if it is a fair price. However, this case is different because: 1. Def did not promise pl they would sell peppers at a specific price; they just shared that expectation. 2. Pl is not an owner but an investor in def’s operation. 3. Def has more expertise than pl, and therefore they have authority to act according to their best judgment. Therefore, selling at a lower price was not necessarily negligence.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
581 - Payment for Not Clearing Warehouse On Time – part II
582 - Money Given for Shemitta Observant Farms
583 - Money Given for Shemitta Observant Farms – Part II
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Beit Din Eretz Hemda - Gazit

P'ninat Mishpat Repercussions of a Sale that Turned Out Not Happening – part III
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P'ninat Mishpat A Commercial Rental for a Closed Business – part II
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Igrot Hare’aya Connecting Disciplines in Torah Study
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P'ninat Mishpat P'ninat Mishpat: Unsuccessful Transfer of Yeshiva – part V
based on appeal ruling 82138 of the Eretz Hemdah-Gazit Rabbinical Courts
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