A company engaged in consulting and exercising rights demanded to receive legal fees from a client after about a decade, contending that it referred it to legal representation that led to a reduction in lease fees vis-à-vis the Tel Aviv Municipality.
The Court rejected the claim and held that the agreement had been abandoned by the parties and had expired due to inaction. Silence, inaction, and the absence of any action to perform contractual obligations over a long period of time may indicate that the agreement has been abandoned and its implied expiration, without the need for a formal notice of cancellation. Here, the company undertook to deal directly with the Tel Aviv Municipality and the authorities regarding the reduction of lease fees and even to pay for experts. However, the company made do with referring the client to a lawyer only. The company did not contact the client for about a decade, was not interested in the progress of the proceedings, did not act to perform the services it undertook in the agreement and for many years refrained from fulfilling its obligations. Therefore, the company is not entitled to payment of fees by virtue of the agreement that was abandoned and expired.