Question:

Is there a Mi Shepara in the following case:
There is a verbal agreement to purchase shares of a startup company, and before any transaction is made its realized that the company will not get off the ground and the buyer wants to back out.

Also, does Mi Shepara apply if the seller says he’s mochel (but not be’lev shalem).

Answer:

If there wasn’t any transaction done between them, such as giving over the money, then a Mi Shepara doesn’t apply.

It might however be “michusar amana”, (acting not trustworthy). But depending on the technicalities of the case, the heter of “trie tara” might apply. This heter is, that if the reason the person backed out of the deal was due to circumstances that had they been known previously he wouldn’t of entered the deal in the first place, then it isn’t michusar amana..

Mechila does help to take of mechusar amana, but if you don’t think it is sincere, you can try to appease him so that his mechila will be sincere..

Sources:

CH:M 204-7, Pischei Choshen  Kinyanim 1-1 ftnt 2.  Rema CH:M 204-11.

Tags: agreement Business

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