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Ruling: We have seen that the agreements were binding and that it was def’s doing that pl did not finish the work.
Regarding the question of reducing VAT, there are indeed strong indications from the sides’ joint calculations that at least for the main payment, a 50% reduction in VAT was planned, although in a recording we hear pl say that he is in favor of the government getting its share. However, this concession is irrelevant. When contractors talk about a reduction in VAT, they do not mean that they will pay in place of the customer, but that they will do part of the payment "off the books" so that no one will pay. We refuse to take part in such illegal actions. Therefore, def will pay VAT, and pl will provide receipts for the full amount received.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
627 - Who Caused the Renovations to Stop? – part I
628 - Who Caused the Renovations to Stop? – part III
629 - Unartistic Material for Artistic Work – part I
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Regarding pl’s claim of 2,000 NIS a day for delay in the work, beit din rejects that claim. The contract gives a projected amount of work time for pl to finish the time. Def did not obligate herself to not take any breaks, especially a reasonable one like to bring in a designer due to the sides’ difficulty in planning jointly. In a discussion that was recorded, there was no hint of monetary demand for the stoppage (just general frustration). There are also no indications that pl had to pay workers or subcontractors for the delay (lack of predictability is a hallmark of construction work).
In total, def must pay pl 37,364 NIS including VAT due to incomplete payment.
Beit Din Eretz Hemda - Gazit
Igrot Hare’aya Connecting Disciplines in Torah Study
Igrot Hare’aya – Letters of Rav Kook 103 – part III
Igrot Hare’aya Connecting Disciplines in Torah Study
Igrot Hare’aya – Letters of Rav Kook #103 – part II
P'ninat Mishpat Who Breached the Contract? – part IV
Based on ruling 81087 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat Limits of Interest Rate for Loan with Heter Iska – part I
based on ruling 80033 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: A Seller with Questionable Rights to the Property – part II
based on ruling 84062 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part II
based on ruling 84093 of the Eretz Hemdah-Gazit Rabbinical Courts
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Based on Siach Shaul, Pirkei Machshava V’Hadracha p. 263 (address at the cornerstone laying for the Yeshiva Chakla’it in Kfar Haroeh – 1938)
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