Thursday, February 4, 2021

Fwd: Business Halacha Daily


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From: Bais HaVaad Halacha Center <info@baishavaad.com>
Date: Thu, Feb 4, 2021, 2:10 PM
Subject: Business Halacha Daily
To: <agentemes4@gmail.com>


ARE THERE ANY LIMITATIONS TO AN AGREEMENT VALIDATION CLAUSE?


Question: It seems that this Agreement Validation clause that is employed in Halachic Contracts is a very powerful thing. It has kabbalas da'as yachid (acceptance of a minority opinion), which allows one to override a muchzak as long as there is a minority opinion. It also overrides moda'ah (a claim that one signed under duress), and asmachta (a claim that one never actually thought this would happen). Is there anything that it does not cover? What is left for bais din to deliberate on in these cases?


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Answer: An agreement validation's purpose is to uphold the intent of the contract, and make sure it is not undermined.

One cannot sell something that is davar shelo ba loalam (something that is not in existence yet), or ein bo mamash (something that has no physical element, like a patent). A person can be concerned that the contract he is trying to execute won't work because of asmachta, moda'ah, davar shelo ba laolam, and ein bo mamash. We use agreement validation to try to override this.

However, Bais Din still needs to discuss the following 2 things:

  • While agreement validation is meant to carry out the intent of the contract, Bais Din needs to figure out what the intent of the contract actually is.

  • When something is either physically impossible or according to normative halacha impossible to do. 

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