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Fine for Breach of Contract

Hi.there is a din that asmachta lo kania.
That’s why bets are void because we say that the better only agreed to the bet because he was sure he’s gonna win.

If a contract was signed for selling a dira, with lawyers and all,and it says that if one party voids and cancels the contract, then he must reimburse the other party for 10% of the deals worth.

That’s not an asmachta under any stance,right?


In principle a fine that is unrelated to damage, such as paying large amounts for a breach of contract, can often be considered an asmachta, and therefore one must be careful in writing up a contract to include clauses that render the terms valid. See Bava Metzia 104a, Shut Ha-Rashba 1:933, and Shulchan Aruch, Choshen Mishpat 207.

Therefore, the question of asmachta in this matter depends on whether the contract was written up in a way that solves the issue of asmachta.

It is noteworthy that the Aruch Ha-Shulchan (207:3) writes that where the agreement has validity based on the Law of the Land, it follows that the terms will not be subject to the restrictions of asmachta – yet this is not agreed upon by all authorities (see Rema 207:15), and therefore the question of whether the clause is binding in Torah law remains open.

Best wishes.

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