Legal Updates

A lessee who knowingly signs a lease in a language it does not understand may be required to fulfill its obligations

July 29, 2024
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A lessee signed a rental agreement in Hebrew but later refused to pay the rent, contending that he did not understand the language and was convinced that the addition of a company under his control to the agreement as an additional lessee "released" him from its obligations.

The Court accepted the claim against the lessee and obliged him to pay the debt in full. A party who signs a document is held to have read it and understood its contents. A contention of a defect in understanding the agreement due to lack of knowledge of the Hebrew language, will not be accepted where such party failed to verify by an interpreter or a consultant that it understands its contents before signing. Here, the company was added as an additional lessee to the lease agreement, in addition to the original lessees, and not in place of any of them. The lessee decided to enter into a business activity and sign legal documents (a lease agreement and a guarantee) allegedly in a language that he does not normally speak, without the assistance of an interpreter or a lawyer. However, the lessee had clear knowledge that he was a party to the lease agreement, but chose to shut his eyes and not check the basic details of the transaction, such as the duration of the lease and the monthly rent. Therefore, he has no other to blame, but himself and must pay the debt.

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