Two parties negotiated a partnership for development of a technological solution but the agreement was not signed. When a claim was filed in Israel the defendant argued that the proceedings should be stayed because the draft agreement included a clause that required any dispute to be held in arbitration in London.
The Court held that an arbitration agreement must be in writing (or exchange of notices) but does not need be signed if one can show existence of agreement to enter an enforceable contract. Sometimes dispatching a draft agreement by email by one party to the other will be deemed an arbitration agreement even if not signed, if the parties have acted thereafter pursuant to the agreement. In this case neither party signed the arbitration agreement and the draft was not accepted and certain material disagreement existed as to certain vital issues. Thus, the Court rejected the contention that a London arbitration agreement existed and held that the case will be heard at an Israeli Court.