A person brought a big evacuate and build project to a company dealing with real estate entrepreneurship. After an agreed draft was reached the company signed it but the person replied that he will sign only upon return from holiday. After a few days he notified that he withdraws from the agreements.
The Court held that a binding contract is made upon acceptance of an offer and ordinarily it is possible to overcome lack of signature if circumstances indicate that a person decided to enter into the contract and the terms ware agreed. Here, the parties drafted the contract as an approach of the company to the person in which it was expressly stated that the contract will become valid only upon signature. Thus, the parties created a mechanism that adds on the ordinary procedures of offer and acceptance, all to ensure agreement and specificity. Because the person did not sign the contract and thus exercised his right not to enter into such agreement, no binding contract was created.