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Ruling: Contemporary poskim agree that a zichron devarim binds one to go through with a sale (see Mishpetei Eretz IV, p. 119), and it appears that zd1 was a standard one. However, pl refused to sign zd1 because it was too binding. The Shulchan Aruch (Choshen Mishpat 61:15-16) teaches that a contract’s meaning can be determined with the help of a careful look at its language and by indications of what the sides to the agreement were thinking. Regarding language, zd2, while called a zichron devarim, uses language of "good faith" to proceed with the proposed transaction without mentioning monetary obligations. Furthermore, regarding the price, it says that "ekronit" (in principle), it will be 3.6 mil. NIS. This extra language is hard to explain unless it means that things (e.g., passage of time/change in price) can affect it, and the Knesset Hagedola (CM, HBY 61:57) says that we can learn things from extra language.
Regarding intention, in an email after def raised the matter of a price increase, pl wrote to def that since the matter was one of good will, it is up to def to decide what he will do. While pl says he changed his mind about a forgiving approach when a lawyer told him the zichron devarim is binding, the email still is a very strong indication of what pl had been thinking when he wrote and signed it.
Pl did present an email from def in which def referred to the zichron devarim as binding, but this is not impactful for two reasons. For one, that was written in regard to zd1, which was written to be binding, but pl did not accept it. Additionally, when there are contradictory admissions, we keep the status quo. In this case, that means that we cannot use the zichron devarim to obligate def (Shulchan Aruch, CM 245:5 and Netivot Hamishpat ad loc.). Status quo should also be employed regarding any lack of clarity in a document (Shulchan Aruch, CM 42). Therefore, the zichron devarim does not provide pl with the ability to enforce the sale.
We will explore next time other reasons for def to keep his commitment to the old price.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
709 - The Binding Nature of the Tentative Agreement – part II
710 - The Binding Nature of the Tentative Agreement – part I
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Beit Din Eretz Hemda - Gazit

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