YeshivaThe torah world Gateway
Beit Midrash
- Sections
- Chemdat Yamim
- Bemare Habazak - Rabbis Questions
- Jewish Laws and Thoughts
- Middot - Character Traits
- The Laws of Ben Adam LeChavero
Answer: In some ways, such late payments are classic ribbit in that a person who needs to pay must pay extra because of the time that passed (what the gemara calls, agar natar – the reward for waiting). But it is/can be different from classical ribbit in two main ways: 1. The payment is not the return of a loan but payment for a sale, which makes it, at worst, a Rabbinic prohibition (Shach, Yoreh Deah 173:4); 2. The increase in payment is not desired by the lender to make money, but is created to pressure the buyer to pay on time (Shut Harashba I:651).
Bemare Habazak - Rabbis Questions (654)
Rabbi Daniel Mann
467 - Listening to Music During the Sefirah
468 - Dealing with Late Payments and Ribbit
469 - Accidentally Paying Back Early
Load More
While this system seems to be the solution to your problem, not all sellers would agree to it because of the following limitation: One may use only a one-time penalty. Multiple penalties over time make it considered like one who is charging for the time, as opposed to for lack of adherence (Shulchan Aruch ibid. 16 and Shach ad loc. 33).
There are possible ideas to make such an approach work. On a practical level, it can be quite effective to make one penalty late enough that it will not be activated by accident and large enough to strongly discourage delaying payment indefinitely. (If there is basic trust between the parties and they understand what and why they are doing it, the seller can relinquish his right to some of the penalty for an honest delay, if it is not built into the binding agreement). I have another idea, based on the idea that it is permitted for a borrower to pay certain loan-generated expenses, including legal ones, which is not considered a penalty (see The Laws of Ribbis (Reisman), p. 78). I would thus propose a system like this. After the one penalty, the buyer obligates himself by contract to pay a high but realistic fee for a lawyer to work on the case if another X weeks go by without full payment; this can be followed by paying for further actions, and eventually for the expenses of adjudication.
Realistically, only clients who are bnei Torah are likely to agree to such convoluted arrangements. Therefore, the best straightforward approach is to write a standard late payment schedule and include a clause that any payment that can be construed as an interest payment is to be governed by the provisions of a standard heter iska. We, at Eretz Hemdah, include such a clause in the relevant documents available for the public.
It is best to rely on such a standard clause only when a more specific ribbit remedy is unavailable. A heter iska is susceptible to the claim of ha’arama (lack of serious intent), especially if the sides lack even general understanding of its mechanism (see opinions in Brit Yehuda 35:4 and Torat Ribbit 16:1). The mechanism (sharing assumed profits and dangers) can justify only moderate price increases. However, despite reservations, heter iska is a legitimate halachic tool when not abused, and it is a necessity as a halachic alternative within Jewish financial institutions and interactions.
If you made your client aware of your recommendation for a heter iska (you can mention that all the major Israeli banks have one) and he or the other side refuse to include it, you can still work on the case (development of that topic is beyond our scope – see The Laws of Ribbis, p. 58).
Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
Rabbis in Midrash
Lessons
fast navigation
Kuzari -Rabbi Ari Shvat Kuzari class 9 - "Seeing is Believing" (parag. 21-30)
These paragraphs elaborate on the theme that seeing and knowing is better than any attempt to prove logically, and begins explaining the difference between Israel and gentiles.
Ein Aya Various Universal Stages of the Geula Process
Rav Kook examines the various stages of redemption, explaining how (in addition to the obvious oft-mentioned stages of ingathering the exiles, reviving the Hebrew language, army, state etc.) the messianic dream of world prosperity, the State of Israel and world unity can and are realistically and logically gradually coming true.
Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
How do we know that the "claim" of mass revelation to 2,000,000 witnesses at Mt. Sinai is really true? This important class answers all of the questions skeptics ask about this claim of the Kuzari.
Ein Aya Armies Still Necessary for Balance & the War Against Wars
Rav Kook explains why the world was originally divided into the various seemingly contradicting ideologies and cultures, in order to develop each one respectively. Swords or armies symbolize how each respective ideology defends themselves, as well as deters their opposing ideologies and cultures. On the other hand, the messianic era will be one of peace, and Rav Kook explains the transition to that stage, which mankind is already undergoing.
The Land of Israel LGBT'S IN ISRAEL
The question was asked, how can one make Aliyah with the LGBT parades?
Kuzari -Rabbi Ari Shvat Kuzari class 7 - Five Accumulative Proofs of G-d
As a preparation for the Kuzari's classic proof of G-d from the mass-revelation at Sinai, we start here with 5 other directions to strengthen our belief which also contribute to what the Kuzari will present as well.
Ein Aya Muscle & Meaning: The Dual Nature of Gevurah (Physical Strength)
Is physical strength and fitness a necessity or an ideal? Although it if often totally overlooked among topics of Judaism, Rav Kook writes that it clearly is also a necessity to deter the many enemies of Israel, but even in Y'mot HaMashiach, in the Messianic era, to a certain extent, it's ideal continues even after our enemies will have been finished off.
