A shipping company terminated without prior notice an agreement it had signed with a company registered in the USA which is a subsidiary of an Israeli company, despite the fact that the agreement contained a link to general term of use which demanded twelve months prior notice.
The Court held that the agreement, despite being a digitally signed terms of service agreement, binds the parties. When an agreement between parties that was signed after terms were negotiated, it cannot be contended that a party to the agreement was not aware of its terms. The very act of executing an agreement is a legal act that indicates that the party has read the document and agreed to its terms. Here, the parties negotiated the terms and conditions of the agreement prior to execution, and although there was use of a link to the terms of service within the agreement, which, in today’s technological age, is acceptable and binding on the parties (and the terms of service are the ones that set the demand for prior notice), such use in todays technological age is acceptable and binding. The shipping company had ample opportunity to negotiate the terms of the agreement and receive legal advice regarding it and is therefore obligated to comply with its terms.