A tenant announced the cancellation of the rental agreement after the landlord violated its obligations to repair defects in the rented property.
The court accepted the claim and ruled that the cancellation of the agreement was done lawfully and the tenant is entitled to compensation. An agreement that was violated by a fundamental breach has the right to cancel it, while returning the value of the consideration received by each party for the agreement, and is also entitled to compensation for the violation. To the extent that it is a non-fundamental violation, the party that was harmed by the violation must give the violating party an opportunity to repair the violation. To the extent that it is not repaired within a reasonable time, the injured party can cancel the contract by notifying the violating party within a reasonable time from the moment the violating party was given an opportunity to repair the violation. Here, the tenant signed a rental agreement for the purpose of operating a pet salon, but the landlord did not bother to inform her of a renovation planned for the property that made it impossible to operate the business in the rented property. In addition, the landlord undertook in the agreement to repair defects in the rented property, but did so partially and with delay. Despite the notices received by the landlord and a reasonable time to correct the defects, it made no effort to correct its violations or allow the tenant to operate her business under reasonable conditions during the renovation. In light of this, the cancellation of the agreement was lawful and the landlord will pay compensation to the tenant for the damages suffered.
Published in Legal Channel 433 19.02.2025 Afik & Co.
To read the verdict , Case (B”Y) 16923-01-23 Maya Dr. v. Anift Ltd.
