The tenant terminated the rental agreement ahead of schedule and left the rented property due to the coronavirus, even though the contract could still be partially fulfilled, and the fact is that after leaving, the tenant established the business in another location.
The court ruled that the tenant must bear 50% of the rent. A breach of contract occurs when there are circumstances that the breacher did not know about and should not have known about and could not have prevented, and the performance of the contract under those circumstances is impossible or fundamentally different from what was agreed upon. In this situation, the breach will not be grounds for enforcement or compensation. Here, even though the coronavirus was an unforeseen event, the contract could still be partially performed and the fact that the tenant established a business elsewhere. Therefore, the tenant must bear 50% of the rent.
To read the verdict, Tel Aviv District Court (Tel Aviv) 18585-05-20 The Workshop of the Generals Ltd. v. Meitar Infrastructure and Communications Construction Ltd.
Published in Legal Channel 430 08.01.2025 Afik & Co. https://he.afiklaw.com/
