A husband signed an agreement in which he gifted his wife real estate. After about a year he regretted he signed the agreement, signed a power of attorney granting the rights to the real estate to his sons but did not inform the wife about the cancellation of the gift.
The Court held that the gift agreement is valid since the agreement was signed with intention and also because he did not notify the wife of the cancellation notice and his intention to withdraw from the gift. Israeli law stipulates that the ownership of a gift passes to the recipient either upon its delivery or in a document confirming it. When the gift is a real estate asset, cancellation is possible only in the event that the giver proves disgraceful behavior on the part of the receiver and he must inform the receiver of the cancellation. Here, a binding agreement was signed, there was no evidence of disgraceful behavior on the part of the woman, and she was never sent a notice of cancellation. Therefore, it was determined that the real estate would be in her ownership.