Caselaw

Civil Appeal 4628/93 State of Israel v. Apropim Housing and Development (1991) Ltd. IsrSC 49(2) 265 - part 14

June 4, 1995
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In this respect, our case is completely different from the matter discussed in the judgment of Other Municipal Applications 479/89  The Coptic Mutran v. Halamish – Municipal Government Company for the Rehabilitation of Housing in Tel Aviv-Jaffa in a Tax Appeal [8], which is cited by my colleague as an example of reliance on the principle of good faith as a supplementary norm.  The fact that the parties agreed on a contractual sanction in the event of a certain breach, and assumed an anonymous breach without a similar agreed arrangement, does not provide a basis for the determination that the contract is deficient and requires completion.  Why, because of the violation that was not accompanied by an agreed sanction, the way is open to the injured party to claim legal relief; And where the injured party is likely to seek his rectification by the right way, the court is not required to pave for him an exchange route, which in any case involves a degree of interference with the freedom of condition.

  1. If my opinion had been heard, then we would have rejected the state's appeal.

Justice D. Levin: 1. In the matter before us, my opinion differs from that of my colleague, the Honorable Justice Matza, and if my opinion had been heard, we would have accepted the appeal.  The appeal before us revolves around the question of the interpretation of the program contract, which was signed between the Government of Israel, through the Ministry of Urban Development and Housing, and various contractors and construction entrepreneurs, including the respondent company.

  1. In the case before us, the circumstances of the conclusion of the program contract and the background that led to its drafting are of great importance. This was a period of great immigration from the Soviet Union, which created concern among the government that there would be a severe shortage of apartments in Israel. Therefore, the government wants to encourage the accelerated construction of apartments, through an incentive program that was worked out by the Ministry of Construction and Housing, and which is intended to create an incentive for contractors and construction developers to build a large number of apartments in a short time.  Benefits were given to the construction companies, in addition to additional incentives to start construction and shorten the construction time.
  2. These benefits and incentives are reflected in the program contract in question, in its clauses

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