Hence, in the normal state of affairs, when the court finds that there is room to award agreed compensation, in the absence of a claim for a reduction in the agreed compensation, the result is binary - if the agreement was breached, the agreed compensation will be awarded in full, and if the agreement was not violated, the agreed compensation will not be awarded."
And yes, the words of Y. Amit, "Agreed Compensation - Issues and Aspects," Din Ve-Devarim 10:17, 21-22 (2018):
"For our purposes, section 15(a) of the Medicines Law grants the court the authority to intervene in the content of the contract by reducing the agreed compensation stipulated in the contract...
A common mistake made by litigants, especially defendants, is that they defend themselves against an agreed compensation claim on the grounds that they did not breach the contract and abandon a second line of defense - a claim for a reduction in agreed compensation. This argument must be raised explicitly in the statement of defense... This is an argument that also requires the laying of a factual basis.
A party that does not raise a claim for a reduction in the agreed compensation risks that if it is determined that the agreement has been breached, it faces the result that the agreed compensation will be awarded in full."
- See also the case law in this regard as follows - Civil Appeal 630/84 Rahamim Bokobza v. Haim Rosalio, IsrSC 39(2) 585 (1985); Civil Appeal 5559/91 Z. Gas and Energy Enterprises (1982) in a tax appeal v. Maxima Air Separation Center in a tax appeal (N. Bo, May 27, 1993); Civil Case 1207/07 Afcon Control and Automation in a Tax Appeal v. Airports Authority (Nevo, October 15, 2021).
- In the case before me, as stated, the Champions' Workshop did not petition for a reduction in the agreed compensation in the framework of the statement of defense, nor even in the continuation of the proceeding.
- In light of the aforesaid, in light of the proceeding and the ruling, I did not see fit to reduce the amount of the agreed compensation set out in the lease agreement, and to deny Meitar's entitlement to the agreed compensation. The agreed compensation rate is determined in the agreement and is intended to compensate for the breach of the agreement's obligations.
In my opinion, the Champions' Workshop fundamentally violated the lease agreement, when it unilaterally and immediately abandoned the leased property, and did not meet its obligations, even when we are dealing with the coronavirus crisis.