It has already been ruled that a breach of the duty of disclosure at the pre-contractual stage, inter alia with respect to the planning condition of an asset, amounts to a breach of the duty of good faith in negotiations enshrined in the aforementioned section 12(a), and that "good faith conduct during negotiations for the purpose of concluding a contract means conduct with honesty and fairness, i.e., a duty not to mislead the other party by failing to disclose information important to its considerations" (Civil Appeal 838/75 Haim Spector v. Yosef Sarfati [Nevo] (November 30, 1977), Civil Appeal 4739/19 S.Y. Meitav Initiation and Building Investments in Tax Appeal et al. v. Zar Gas Stations in Tax Appeal [Nevo] (July 19, 2020)). Therefore, upon the defendant's breach of the duty of disclosure as described above, the plaintiff is entitled to compensation from it, by virtue of section 12(b) of the Contracts Law.
- Another source of compensation relief can be found in the laws of breach, and more specifically in the Contracts Law (Remedies for Breach of Contract), 5731-1970 (hereinafter "The Medicines Law").
Section 1 of the Medicines Law defines a "breach" - "an act or omission that is contrary to a contract"
Section 10 of the Medicines Law states as follows:
"The injured party is entitled to compensation for the damage caused to him as a result of the breach and its consequences, and which the violator saw or should have seen in advance, at the time of the conclusion of the contract, as a probable result of the breach"
In our case, it has been proved, as stated, that The defendant sold the plaintiff an opaque space built without a building permit in accordance with the law, contrary to the nature of the sale as described in the sale agreement, and thus it breached the agreement with him, and must compensate him for the damage caused to him as a result of the aforementioned breach and its consequences, by virtue of Section 10 to the Medicines Law.
- The conclusion is, therefore, On the contractual level, the plaintiff is entitled to compensation from the defendant for the damage caused to him as a result of the breach of the duty of disclosure by virtue of the Article 12 of the Contracts Law, or due to a breach of the sale agreement by virtue of the Section 10 to the Medicines Law.
- On the Tort Level - Article 56 To the Ordinance The Torts [New version] entitled "Deception" states as follows:
"Fraud is the false presentation of a fact, knowing that it is false or without belief in its truth or out of frivolity, when the presenter does not care whether it is true or false, and with the intention that the misrepresentation will act according to it; However, a claim against such representation may not be filed, unless it was intended to mislead the plaintiff, even misled him, and the plaintiff acted in accordance with it and thereby suffered pecuniary damage."