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Ruling: Was the first agreement a sale or a rental? Pl claimed that in three ways it is evident the rental was an unofficial sale. 1. The rental contract mentions the planned sale and lists a price for it. 2. The "rent" will be reduced from the sales price if and when the sale happens. 3. Pl agreed to not sell the house to anyone else during the time def was working on getting accepted to the yishuv. Def points out that the "sales price" in the contract was not followed, as def agreed to not count the rental payment toward the sales payment because of another tax that cropped up unexpectedly. Since pl saw the price as not fixed, the agreement was not a full-fledged sale but a statement of hopes for the future.
The question is not what the plans were but whether the sides ultimately built it as a sale or a rental, and the latter is clearly the case. Both its basic terminology and many specific elements of the agreement relate specifically to rentals. Even the matter of the price of the sale did not end up being a sign of sale, considering that it changed. Therefore, there was no sale, and there is no reason that pl, to his misfortune, should not have to pay the mas hashbacha.
Can there be claims of mekach ta’ut (nullification of an agreement based on misinformation)? Factually, it is agreed that the urban planning rules were final and available before the legal sale but that neither of the sides knew about it. This raises the possibility of mekach ta’ut. Although mekach ta’ut based on mispricing does not apply to real estate, if there was a mistake on a factual point, such as the size of the property, then there is mekach ta’ut (Kiddushin 42b).
We continue next time about nullifying (elements of) the agreement based on misinformation.
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
763 - Mutual Repairs Agreement – part II
764 - Who Pays for an Unexpected Tax? – part I
765 - Who Pays for an Unexpected Tax? – part II
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Beit Din Eretz Hemda - Gazit
P'ninat Mishpat Payments after a Gradual End of Employment
(Based on ruling 82024 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 Repercussions of a Sale that Turned Out Not Happening – part III
(based on ruling 83045 of the Eretz Hemdah-Gazit Rabbinical Courts)
P'ninat Mishpat P'ninat Mishpat: Agricultural Water Rights – part II
based on ruling 84122 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Multiple Agreements and Parties – part II
based on ruling 80082 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Multiple Agreements and Parties – part IV
based on final ruling of 80082 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Undoing a Problematic Partnership – part I
based on ruling 84061 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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