Payment is not only a right of the creditor, it is also the duty of the debtor.

Question: I gave a check to a local merchant, but it hasn’t been cashed in months. Probably they lost it. Do I have to tell them?

Answer: It should be obvious that there is an ethical obligation to pay for merchandise. One way this obligation is reflected in Jewish law is in the Talmudic dictum, “It is a commandment for the debtor to repay”.

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Before accepting money for damages, try to limit them.

Question: I rent out an apartment. A prospective tenant gave me a deposit, but then cancelled. He gets the deposit back if I find a new tenant. Do I have to look for a new tenant, or can I just pocket the deposit?

Answer: Your question deals with a concept known in secular law as “mitigation”. When one party is liable for loss caused to another, typically the person suffering the loss has an obligation to mitigate the damage before holding the other responsible. When someone cancels a rental agreement on short notice, he causes you a loss because if he hadn’t grabbed the apartment you would have found someone else. The question is if now you have the obligation to make an effort to find someone else.”.

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Professionals are entitled to recompense for their advice.

Question: Recently I went to a public lecture by a known lawyer. At the end of the lecture he gave out his e-mail and offered to answer questions. When I sent him a draft contract I want to sign, he sent me back his comments plus a hefty bill. Do I have to pay?

Answer: There is a stereotype that people are wary of asking lawyers even casual legal questions, such as at a cocktail party, fearful they might get a bill the next day. Perhaps lawyers themselves are grateful for this wariness, so that they can enjoy themselves at cocktail parties without feeling they are on a “busman’s holiday”.

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My friend has unjustified resentment towards me. What should I do?

Question: A friend is bearing a silly grudge from a supposed wrong. What recourse do I have?

Answer: It’s too bad your friend is bearing a grudge. The Torah warns us (Leviticus 19:18), “Don’t take vengeance and don’t bear a grudge against the children of your nation; love your neighbor as yourself, I am the Lord.”

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Even a friendly agreement should be carefully elaborated.

Question: A friend suggested I join him in a business deal. When I suggested a contract, he explained that we’re good friends and a hand-shake is enough. Should I be suspicious?

Answer: You don’t have to be suspicious of your friend, but you should certainly be prudent

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A Jewish view on fair pricing.

Question: I have a standard price list, but I’m pretty liberal about giving discounts when I need to make a sale. Is this a problem?

Answer: Adam Smith noted that economic progress is dependent “a certain propensity in human nature,” namely “the propensity to truck, barter, and exchange one thing for another”. After all, Smith notes; “Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog.”

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Replacing competition for opulence with delight in simplicity.

Question: My neighbors have an annoying way of trying to match or outdo us materially. I’m thinking of borrowing something or pretending to have it, just to goad him into wasting his money on this annoying habit.

Answer: The urge to keep up with the Joneses (or to surpass them) is hardly new. The phenomenon is described many times in the words of our sages – almost always in the context of a discussion how to mitigate this harmful phenomenon.

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Avoid social lies, especially self-serving ones.

Question: When an important customer calls, it’s awkward for me to say I’m busy. So I tell my secretary to tell the caller I’m out or in a meeting. Is this an acceptable “white lie”?

Answer: Our tradition has a seemingly conflicted view of so-called “white lies,” which are meant to smooth over social situations. (Lying to obtain undeserved personal benefit is considered fraud.) In some passages, we find this practice to be sanctioned and even favored; in others it is barely tolerated. Let us see if we can find a coherent message in these seemingly conflicting passages. continue

Gifts to children should be used only for their benefit.

Question: Relatives gave us presents for our new baby son. Some told us to put the money in a savings account for him, but we could really use the money right now.

Answer: Jewish law, like secular law, recognizes strict limits on the property rights of minor children. For example, the mishna states that if a young child finds a lost object, the object belongs not to the child but to the parent. The Talmud explains that the reason is that the parents should not resent the child’s enrichment, at the same time that they are called upon to endure great expenses for his upbringing. (Bava Metzia 12a-b) The commentators add that the same reasoning applies to gifts - normally, gifts given to children pass to the ownership of the parents, as long as the parent is the one supporting the child. (Nimukei Yosef commentary there)

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Perils of hiring a worker away from a rival firm.

Question: My firm would have trouble filling an open position with a simple ad asking for CV’s. But we know an existing worker at another firm who is suitable. Can we try to lure him away?

Answer: Jewish law has a healthy respect for existing business relationships and negotiations, and educates us to be reluctant to disrupt them. The Talmud tells the following story:

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