טעות בכדאיות העסקה: שווי האובייקט, התרחשויות עתידיות, נטילת סיכון ורשלנות הטועה

Translated title of the contribution: Mistake as to the Worth whileness of the Transaction: The Object’s Value, Future Developments, Assumption of Risk, and Negligence

Research output: Contribution to journalArticlepeer-review

Abstract

Under sections 14 and 15 of the Israeli Contracts (General Part) Law, 1973, a party who entered a contract as a result of a serious mistake, or a mistake induced by the other party (i.e., deceit), may rescind the contract. However, section 14(d) excludes “a mistake as to the worthwhileness of the transaction” from the ambit of mistake and deceit. Four different meanings have been offered for this expression by Israeli courts and commentators: (1) mistake as to the value of the transaction’s object, (2) misprediction of future developments, (3) mistake regarding which a party has assumed the risk, and recently (4) mistake attributable to the mistaken party’s negligence. The Article maintains that these are four distinct issues that merit separate consideration, hence taking a stand regarding one of them does not necessarily bear on the others. Specifically, the Article criticizes the position that the mistaken party’s negligence should negate her reliance on the mistake (or deceit). It argues that this position, emerging from the majority opinion in Karmel v. Talmon, is incompatible with the existing law of mistake and related issues. This position signifies a troubling retreat from notions of mutual consideration, fairness, and reasonableness, which have taken hold in Israeli law in the past decades, towards extreme individualism and “caveat emptor.”
Translated title of the contributionMistake as to the Worth whileness of the Transaction: The Object’s Value, Future Developments, Assumption of Risk, and Negligence
Original languageHebrew
Pages (from-to)57-90
Number of pages34
Journalדין ודברים: כתב-עת משפטי בין-תחומי
Volumeי
Issue number2
StatePublished - 2018

IHP publications

  • IHP publications
  • Business
  • Contracts
  • Contracts -- Israel
  • Cost effectiveness
  • Good faith (Law)
  • Mistake (Law)
  • Negligence
  • Risk-taking (Psychology)
  • Verdicts

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