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Ruling: Corona discount for the rent: Def’s initial agreement to the rental payment is considered a binding admission of obligation, and therefore we do not accept the new claim of partial exemption. Furthermore, the exemption due to a makat medina (a broad problem that prevents use of something rented – see Bava Metzia 105b) does not apply here, because many yeshivot were able to use their buildings during the pandemic. Therefore, def has to pay the unpaid rental fees in full (85,000 NIS).
Payment for removed improvements: Beit din accepts pl’s fundamental claim. First, the contract requires def to leave whatever they permanently installed into the structure, which applies to air conditioning and light fixtures. Secondly, the contract requires def to provide those things in the renovation for which they were compensated. That which was included in the contract is binding based on two kinyanim: 1. Chatzer – pl’s property acquired that which was placed into in. Although there is a machloket of whether kinyan chatzer works with property that is rented out (see Shulchan Aruch, Choshen Mishpat 313:3 and Acharonim ad loc.), since the contract says that the provisions shall take effect "in the best possible way," we accept the opinions that it works. 2. Situmta (societally accepted finalization – see Shulchan Aruch, CM 201:2) – Whatever is stipulated in a signed, written contract is considered binding.
However, beit din reduces (by 8,211 NIS) the amount due on the air conditioning, as units that pl was to have received depreciate over the year (fixtures do not).
Late payment – The contract speaks of 400,000 NIS payment without the need to prove damage for delay in implementing the contract. However, beit din agrees with def that the lateness penalty is for def not leaving the building at the end of the contract, not for payment.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
705 - Limiting Exorbitant Lawyer’s Fees – part II
706 - Unpaid Rent during Corona
707 - Did the Realtor Help?
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Beit Din Eretz Hemda - Gazit

P'ninat Mishpat A Commercial Rental for a Closed Business – part II
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