"A person who entered into a contract due to a mistake that is the result of a mistake made by the other party or another on his behalf, may cancel the contract; In this regard, "deception" - including the failure to disclose facts which, according to law, custom or circumstances, the other party should have disclosed.
In our case, there can be no dispute that The fact that the "apartment" is an impervious space and that it does not have a lawful building permit is a material fact that any reasonable person, including the defendant, should have disclosed to the plaintiff, both according to the law and according to the circumstances of the matter as described above, prior to the signing of the sale agreement. When she did not do so, the defendant breached her legal duty to the plaintiff, and caused him to enter into the sale agreement due to a mistake that was the result of her deception as aforesaid In section 15 The Contracts Law (on the duty to disclose and refrain from disclosing important and vital information, such as the planning status of a property, see Civil Appeal 7730/09 Nissim Cohen v. Bnei Gazit (2000) in Tax Appeal et al. [Nevo] (June 6, 2011) and the case law cited there).
- However, in our case, the plaintiff waived the option of cancellation and he even sold the "apartment" to a third party as described above, and his claim focuses solely on the compensation remedy. Therefore, Article 15 The Contracts Law, which grants him grounds for cancellation, is not relevant to our case, and his right to compensation will be examined according to other legal sources, including Sections 12(a) and12(b) The Contracts Law, which reads:
Section 12(a):
"In negotiations leading up to the conclusion of a contract, a person must act in an acceptable manner and in good faith."
Section 12(b):
"A party that did not act in an acceptable manner and not in good faith owes the other party compensation for the damage caused to it as a result of the negotiations or as a result of the conclusion of the contract, and the provisions of sections 10, 13 and 14 of the Contracts Law (Remedies for Breach of Contract), 5731-1970, will apply with the necessary changes."