Property Sale Agreements · Legal briefing
Property Contract Breach & Termination
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
A mortgage payment is two weeks late, or the seller fails to deliver the keys. Can you immediately terminate and demand agreed damages?
The legal position
The contract and Contracts (Remedies for Breach) Law 1970 govern the response. Sections 6–8 distinguish fundamental from other breaches. A non-fundamental breach generally requires an opportunity to perform before termination; a fundamental breach may permit termination without an extension, with timely notice. There is no universal statutory grace period of 7–14 days. Blanket fundamental-breach clauses require scrutiny, and agreed damages remain subject to section 15. Official source 1
Your next step
Gather payment schedules, confirmations and bank correspondence. Before terminating, assess the breach, any required extension and lawful notice. An organised response preserves rights but does not guarantee termination or damages.