Lease Agreements in Times of War: Operation Swords of Iron Impact
Operation Swords of Iron significantly impacted Israel’s economy. This raised many legal questions. A key issue is the effect on contracts, especially lease agreements in times of war.
Each legal case is unique. But understanding the laws is vital. Many owners offered homes to displaced people. We provide a sample unprotected lease. It’s for the complex Operation Swords of Iron. Also, find a short-term lease agreement [here].
War and Lease Agreements in Times of War: Contract Breach
Contracts must be fulfilled in good faith. Fulfill the contract if possible. Claiming breach just due to war fails.
“Breach due to war” claims rarely succeed. You need “force majeure” or “frustration of contract.” (Section 18, Contracts Law). Prove you were prevented. Circumstances must be unforeseen and unavoidable.
Proving Contract Frustration
To claim frustration, prove three points:
- Performance was impossible or very different.
- You couldn’t foresee the circumstances.
- You couldn’t prevent the circumstances.
The second point is hardest for war claims. Israel’s Supreme Court deems war foreseeable. So, war-related frustration claims usually fail. This holds true even in severe wars. Security issues aren’t grounds for breach.
“Legal Breach”: The Extension of Time Limits Law
Courts often reject frustration claims. This is partly due to the Extension of Time Limits Law (1975). This law automatically extends deadlines. Or allows extensions through court requests.
For instance, emergency service extends deadlines. If called up, you get an extension. It’s 30 days after service ends (Section 2(a), 1975 Law).
Courts rule: use legal solutions to ease deadlines. Learn more about extensions from Operation Swords of Iron.
Need help with your lease agreements in times of war?
Lease Agreement Breach During War: Special Rules
Most Israeli leases follow the Rent and Loan Law. Housing is sensitive. So, the Rent Law has special payment exemptions. (Section 15, Rent and Loan Law).
A tenant is exempt from rent if:
- They couldn’t use the property.
- Prevention linked to property or access.
- Tenant couldn’t foresee circumstances.
- Tenant couldn’t prevent them.
- Tenant didn’t end the contract.
These are like “regular” frustration conditions, plus two more. War-related frustration claims usually fail. But Corona changed this trend. Courts recognized Corona as “force majeure.” Still, usually only partial exemptions were given.
Postponement of Deadlines in Lease Agreements in Times of War
On October 19, 2023, a new law passed. It’s for postponing deadlines. (Temporary Order – Swords of Iron, 5784-2023). It lets eligible individuals postpone payments. Find the eligible list [here].
Lease agreement deadlines postpone by 30 days if: (Section 2(a), Law for Postponement of Deadlines):
- Contract made before Oct 7 – Nov 7, 2023.
- Payment due in that period.
- Applicant is on the eligible list.
- Applicant notified other parties.
- Other parties aren’t eligible.
If all conditions met, no breach claim exists.
Eligible individuals also get 30-day payment postponements for: (Sections 3 and 4, Law for Postponement of Deadlines):
- Payments to authorities (property tax, water).
- Court decision deadlines (e.g., eviction).
Sample Lease Agreement for Security Situations
Many owners rent to displaced people during crises. Operation Swords of Iron left many homeless. Helping is good, but consider both parties’ needs. Displaced people benefit from lenient, short-term leases. Owners keep asset protection.
We offer a sample short-term lease agreement. We also included a sample promissory note. And, of course, a sample unprotected lease agreement is available.
Do you need help navigating lease agreements in times of war?
