A prohibited transaction

Hi,

A transaction which violates a halachah, such as sale of a Torah scroll for something of lesser sanctity, is still valid. However, it is possible to suggest that where a party to the sale did not know he was breaking the law, he could claim that this was a sale made under a false impression - מקח טעות - and therefore not bringing.

(Pitchei Choshen Kinyanim 1:25-26 and footnote 48)

Have a great day,
Mordechai

Backing out immediately

Hi,

Both seller and buyer may back out of a transaction without penalty if they express their retraction within a few seconds [תוך כדי דיבור] of the deal.

(Shulchan Aruch Choshen Mishpat 195:7; Pitchei Choshen Kinyanim 1:20)

Have a great day,
Mordechai

Cancelling a transaction

Hi,

Where a transaction has been fully executed, and then both sides agree to retract, the transaction can be reversed, but it cannot be annulled. A new transaction is needed in order to reverse matters.

(Pitchei Choshen, Kinyanim 1:10)

Have a great day,
Mordechai

Witnesses are not necessary

Hi,

A transaction is binding once executed, even without witnesses.

(Shulchan Aruch Choshen Mishpat 189:1)

Have a great day,
Mordechai

License to renege

Hi,

The consensus of authorities in Jewish law is that in any transaction for which one of the parties has the legal power to back out because they never fully agreed to the deal, the other party is able to back out as well.

(Pitchei Choshen, Kinyanim 1:8)

Have a great day,
Mordechai

Backing out on one's word

Hi,

A sale is not complete based on verbal commitment alone, without an act of kinyan sealing the transaction. Nonetheless, one should stick by his word; once one has set a price and agreed to a deal, it should be viewed as ethically binding, although some are lenient where market circumstances change to one's great detriment.

(Pitchei Choshen Kinyanim 1:1-3)

Have a great day,
Mordechai