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Breach of contract

A signed agreement the other side has stopped honouring.

Breach of contract litigation in Israel: Aun & Co. enforces and defends commercial agreements — damages, enforcement, rescission and agreed-compensation claims.

A breach case looks simple and rarely is: the contract says one thing, the correspondence says another, and both sides performed imperfectly. Israeli law under the Contracts (Remedies for Breach of Contract) Law 1970 offers enforcement, rescission and damages — including agreed compensation clauses — but the winning route depends on what the record actually supports. The firm reads the whole performance history before choosing the remedy to lead with.

The work spans
  • Damages and enforcement claims on commercial agreements
  • Defence of breach claims: performance, waiver and set-off theories
  • Rescission and restitution where continuation is the worse option
  • Agreed-compensation (liquidated damages) claims and reduction fights
  • Notice, cure-period and termination mechanics done correctly
  • Payments stopped mid-project and the counterparty is inventing defects to justify it.
  • You received a termination letter that misstates the contract and the history.
  • The other side demands agreed compensation wildly out of scale with any real loss.
  • You need to exit a failing agreement without handing the other side a breach claim.

The firm reconstructs performance day by day: deliveries, payments, complaints, silences. Breach cases are usually won on the correspondence around the contract rather than the contract itself — who gave notice, who waived, who kept performing. The remedy is then chosen for the record you have: enforcement where performance is provable, damages where loss is quantifiable, rescission where the numbers say walk.

04 · What you get

The remedy fits the record

Enforcement, damages or rescission chosen for what your documents can actually prove — not for what sounds strongest.

Termination done cleanly

Notices and cure periods executed by the book, so ending the contract does not become the other side's cause of action.

Quantum built to survive

Loss calculated from source documents with causation mapped, because damages that cannot be traced get cut.

A typical engagement: a supplier under a multi-year agreement faces a customer who stopped paying and alleges defects raised for the first time after the invoices. The firm rebuilds the acceptance history from delivery records and correspondence, then sues on the undisputed debt while isolating the defect story.

Described in abbreviated, anonymised form to preserve client confidentiality.

What remedies exist for breach of contract in Israel?

Three main ones under the Contracts (Remedies) Law 1970: enforcement of the contract, rescission with mutual restitution, and damages — including agreed compensation where the contract fixes it. They can be combined, within limits, and the right lead remedy depends on the evidence.

Are liquidated damages clauses enforceable in Israel?

Yes — agreed compensation is enforceable without proof of loss, but the court may reduce it if it bears no reasonable relation to the harm foreseeable at signing. The fight is usually over reduction, not validity.

Do I have to send a warning letter before suing for breach?

For rescission, a cure notice is generally required unless the breach is fundamental. Beyond the legal minimum, a precise demand letter is strategy: it fixes the record, starts clocks, and often reveals the defence you will face.

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