What does the agreement provide?
The analysis begins with the agreement, exhibits, proposals, and later modifications. Correspondence and course of performance may supplement the written instrument and show how the parties understood their obligations.
What is the breach?
A specific act or omission should be identified: nonpayment, delay, defective delivery, termination of service, or another failure. It is also important to determine whether additional time was granted, whether the breach was cured, and whether the injured party performed its own obligations.
Selecting the remedy
Israeli law may permit enforcement, rescission, or damages. The appropriate remedy depends on feasibility, the harm suffered, and the practical objective. A liquidated-damages clause does not always eliminate the need to examine the circumstances and governing law.
Proving and mitigating loss
Invoices, payments, substitute proposals, and records of loss should be preserved. The injured party must take reasonable measures to mitigate and cannot assume that every remote consequence will be imposed on the breaching party.
Notice and negotiations
A demand letter may place the other party on notice and permit cure or settlement. It should be precise, consistent with the agreement, and drafted without compromising future positions.
Concluding point
A strong contractual claim connects a clear obligation, a proven breach, and loss that can be explained and quantified.
Principal legal sources
- Contracts (General Part) Law, 5733-1973.
- Contracts (Remedies for Breach of Contract) Law, 5731-1970.