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Ruling: The Maggid Mishneh (Mechira 15:3) says that if a buyer could have checked and uncovered the blemish in the purchase item and did not do so, he no longer can nullify the sale because of it. Many agree and many disagree with this opinion (see S’ma 232:10; Shut Maharashdam 385). Also, some limit the Maggid Mishneh to cases where the check can be done easily and without charge. Others say that it does not apply when the seller explicitly assured the buyer that the flaw did not exist. Both of these limitations enable pl to claim an erroneous agreement.
On the other hand, the contract says that pl checked all of the pertinent information and found everything to their liking. Although pl claim that since they signed a standard agreement, dictated by def, they should not be bound by it. It is a complicated matter whether we could accept such a claim against what pl signed. But in this case, it is not necessary because the admission of checking everything is stated to apply to everything except what is found in the contract. Since def1’s ownership of the property is a provision of the contract, def1 indeed misled pl, and pl did not admit that they were aware.
In order for pl to collect from def2, owner of def1, there are two hurdles to overcome: 1. the idea that obligations of a corporate entity are paid only from the assets of the entity, not of its owners; 2. the fact that def2 did not agree to sign the arbitration agreement. Regarding #1, the halachic justification for the "corporate veil" is the agreement of the person doing business with it. However, here where the agreement was nullified based on fraud, the corporate veil should not apply. There are reasons according to Israeli law to lift the veil in this case (ed. note – beyond our scope).
Regarding #2, def2 can be obligated as well. Since he is the sole owner of def1 and he was interested in pursuing litigation in this beit din and took part in all of its proceedings, it is incorrect to say that he is not part bound by the litigation. Therefore, if def1 will not have the funds to pay pl, def2 will be liable to pay.
P'ninat Mishpat (834)
Beit Din Eretz Hemda - Gazit
835 - P'ninat Mishpat: A Seller with Questionable Rights to the Property – part I
836 - P'ninat Mishpat: A Seller with Questionable Rights to the Property – part II
837 - P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part I
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Beit Din Eretz Hemda - Gazit
P'ninat Mishpat Limits of Interest Rate for Loan with Heter Iska – part II
based on ruling 80033 of the Eretz Hemdah-Gazit Rabbinical Courts
Igrot Hare’aya Trying to Arrange Purchase of Land in Eretz Yisrael
#222 Date and Place: 2 Elul 5669 (1909), Rechovot
P'ninat Mishpat Who Breached the Contract? – part IV
Based on ruling 81087 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat A Commercial Rental for a Closed Business – part II
based on ruling 80047 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Multiple Agreements and Parties – part III
based on appeal of ruling 80082 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Dividing Parents’ Resources when Mother Still Alive
based on ruling 82017 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: Late and Flawed Apartment
based on ruling 82174 of the Eretz Hemdah-Gazit Rabbinical Courts
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Hosha'ana Rabba FLYDUBAI & HOSHANA RABBA- ANI VAHU HOSHIA NA- I & HIM SAVE US
"Ani vaHu Hoshia Na", "I and Him, Save Us". We don't just pray to Him, but we also pray to and for ourselves that we should emulate and educate our children to have that instinctive altruism with which He created the world. President Trump seemed amused about Yaniv Hayon, our PLUMBER who confidently worked with G-d like Superman (he learned from a pilot on a TV show!) to save 174 lives on the Dubai hijacking, but we in Israel are totally accustomed already 78 years to our plumbers, teachers, garbage-men, rabbis, farmers & doctors being Hashem's shlichim! This is what Zionism is about.
