Caselaw

Civil Case (Tel Aviv) 35033-04-21 Lawful Refund Ltd. v. Dynamometer Factories for Vehicle Testing 1965 Ltd. - part 28

July 6, 2026
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The case law teaches that there may be circumstances in which it is possible to implicitly learn from the conduct of the parties about the abandonment and expiration of the agreement, without a notice of cancellation being given.

In Tax Appeal 2943/18 Anonymous v.  Anonymous [Nevo] (December 6, 2018), the validity of a prenuptial agreement was discussed, and the court ruled that the fact that the obligations under the agreement were not fulfilled for a long period of more than a decade, necessitates the conclusion that the agreement was abandoned and the obligations by virtue of it are null and void.The court summarized well and extensively the case law regarding the abandonment of an agreement (paragraph 12), with reference to a number of rulings.  See, for example, the judgment in Other Municipality Applications 10148/05 Teddy Jerusalem in Tax Appeal v.  Katz-Shivan, [Nevo] (March 15, 2010) (paragraph 20), in which the court held:

"...  The legal conclusion regarding the abandonment and expiration of the agreement, which the trial court derived from the facts that were proven before it, is also well anchored in the case law of this court, in which it was determined that there may be cases in which silence, inaction and lack of any action to perform the obligations set out in the contract for a very long period of time, will indicate that the parties have abandoned the agreement and waived its performance, and therefore it should be regarded as an agreement that has expired or been canceled with the consent of the parties and has passed away."

See also the words of the Honorable Justice Hendel, Other Municipality Applications 3860/09 Keren Hayesod v.  Keren Hayesod, [Nevo] (January 12, 2014) at paragraph 8:

"In the case law of this court, it was held that, in the appropriate case, an agreement should be regarded as a contract that has expired or has been implicitly cancelled by the parties.  One example of this is the expiration of a contract due to its abandonment.  Silence, inaction, and lack of any action to carry out the obligations set out in the contract for a very long period of time may indicate that the parties have abandoned the agreement.  The abandonment of a contract by a party may mean that he has even waived his rights under the contract.  This rule is rooted in case law."

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