Legal Updates

Enforcing a contract in a manner other than the agreed essence can only be demanded under exceptional circumstances

June 13, 2019

The Ashdod Port published a tender for supplying marine bunkering services at the port as part of its legal obligation to provide the services. The winner undertook to provide bunkering services with two barges and even rejected contention of being a losing offer. One year after commencing operations, the company demanded a change in the tender conditions to enable it to operate with just one barge as it is losing $250,000 per month.
The Supreme Court rejected the motion. The economic unfeasibility of an agreement does not provide grounds to unilaterally amending an agreement, and it is only in extreme cases that an order can be issued to enforce an agreement in a manner other than its literal form. In any event, an event that thwarts the fulfillment of the agreement might create a quasi immunity against enforcement and remuneration claims from the impaired party, but does not create grounds for claim by the breaching party. Finally, even if it will be held that Ashdod Port insisted on specific performance of the agreement in a manner that does not comply with the legal demands, compensation may be granted but not an order for enforcing the agreement.