Is War Still “Force Majeure”? How Israeli Courts Are Ruling on Contract Cancellations in 2025-2026

The bottom line: Since October 2023, many businesses have tried to escape contracts by claiming “force majeure” due to the war. Some succeeded. But in 2025-2026, the rules have changed. Courts are refusing to accept blanket claims of “war” and are demanding specific proof that the security situation actually prevented performance of the contract.

Those who don’t understand this shift may find themselves facing a breach of contract lawsuit.

The Problem: The Law vs. Reality

Israeli law recognizes contract frustration under Section 18 of the Contracts (Remedies for Breach) Law. The conditions are cumulative and strict:

1. The breaching party didn’t know and couldn’t have foreseen the frustrating circumstances. 2. The breaching party couldn’t have prevented them. 3. The circumstances actually frustrated contract performance.

Sounds reasonable? Here’s the catch: historic Israeli case law holds that war is a foreseeable event. Justice Moshe Landau ruled following the Yom Kippur War that as long as Israel hasn’t achieved peace with its neighbors, war — sooner or later — is a foreseeable occurrence. This ruling has guided Israeli law ever since.

In other words: In a country where the unexpected is expected, a “force majeure” claim based on war is almost never accepted.

What Changed Since October 2023?

Phase 1: “Grace Period” (October-November 2023)

The legislature recognized the severity of the situation and enacted the Postponement of Dates Law (Swords of Iron), which established automatic postponement of contract deadlines, payments, and court judgments for populations directly affected — evacuees, reservists, and residents of declared zones. During this period, courts relatively readily accepted force majeure claims.

Phase 2: “Everything Is War” (2024)

Many businesses attempted to use the “force majeure” argument broadly — even when the impact on their business was only indirect. Airlines canceled flights and cited “war” as a blanket defense. Suppliers delayed deliveries. Tenants sought rent exemptions. Some claims were accepted, but courts began raising eyebrows.

Phase 3: “Prove It” (2025-2026)

This is where the dramatic shift occurs. Courts are explicitly ruling that the general claim of “war” is no longer sufficient. You must prove a direct, specific connection between the security situation and the inability to perform the specific contract.

A practical example from 2025-2026 aviation rulings: courts held that when Ben Gurion Airport was operating normally and other airlines were running flights, it was impossible to claim the flight couldn’t be operated. The legislature even established a closed list of dates when a security prevention applied. Outside those dates, the defense is rejected.

This principle applies to every commercial contract, not just flights.

4 Questions Courts Are Asking Today

Question 1: Does the Contract Include a Force Majeure Clause?

If yes — the court will enforce what the parties agreed. If war is listed among triggering events — the contractual mechanism applies. If war isn’t mentioned — an interpretive question remains, depending on the language and intent of the parties.

Question 2: Is the Breach Directly Connected to the Security Situation?

A business in Tel Aviv canceling a supply contract because of “the war” — when hostilities are at the northern border — will struggle to prove a direct connection. By contrast, a business in an evacuation zone or whose employees were called up for reserve duty has a clear link.

Question 3: Did You Attempt to Perform the Contract Alternatively?

The court examines whether the party claiming force majeure acted in good faith and tried to minimize damage. Was an alternative proposed? Was early notice given? Was there an attempt to perform part of the contract?

Question 4: Is the Breach Limited to the Force Majeure Period?

Once the security situation improves, the obligation to perform returns. Failure to resume performance within a reasonable time will be treated as ordinary breach of contract, without force majeure protection.

Practical Guide: 5 Steps to Protect Your Business

Step 1: Review Your Existing Contracts — Now

Do they contain a force majeure clause? Is it detailed enough? Does it include war, security emergencies, reserve duty callups? If not — you’re exposed.

Step 2: Add Tailored Force Majeure Clauses to Every New Contract

A good force majeure clause should include: an explicit definition of which events qualify (war, military operation, state of emergency, regional evacuation, reserve duty), an activation mechanism (written notice, timelines, documentation), consequences (postponement, payment reduction, termination), and conditions for resuming normal performance.

Step 3: Document Everything

If you’re forced to breach a contract due to the security situation, document in real time: evacuation orders, call-up notices, zone closures, business activity data. These documents will be your evidence if you end up in court.

Step 4: Send Immediate Notice to the Other Party

Don’t wait. Send written notice of your inability to perform, detail the reasons, and propose alternatives. Courts value good faith and proactive conduct.

Step 5: Attempt Partial Performance

Even if you can’t fulfill the entire contract — try to perform part of it. Propose alternative timelines. Demonstrate that you’re making every effort. Courts protect those who tried — not those who walked away.

Contracts Signed After October 2023: An Additional Trap

A critical point many businesses miss: If you signed a contract after the war broke out, the claim that you couldn’t foresee the security situation will not be accepted at all. You knew there was a war when you signed. Therefore, contracts signed today must include detailed, tailored force majeure clauses — otherwise, you have no defense.

How Our Firm Can Help

Samuel Even & Co. Advocates assists businesses in navigating the complex legal landscape of contracts under the security situation, including:

Existing contract audits — identifying exposures and gaps in force majeure clauses
Drafting tailored force majeure clauses — war, security emergency, reserve duty, evacuation
Representation in contract disputes — breach of contract claims, defense against frustration claims
Negotiation for agreed solutions — performance postponement, term modifications, agreed exits

Don’t assume the war protects you from a lawsuit. Contact us to review your contracts.

03-6348020 | [email protected]

Is War Still 'Force Majeure'? How Israeli Courts Are Ruling on Contract Cancellations in 2025-2026