Due to a disagreement purchasers of an apartment canceled the agreement by telephone and in a letter to the contracting company. The company did not sign the cancellation letter but sent an e-mail containing actions to be taken for the cancellation, including reports to the Tax Authority. Later, the purchaser sought to withdraw the cancellation of the agreement but the company refused.
The court held that an agreement may be cancelled by consent of the parties, explicitly or implicitly, as to the cancellation of their contractual relations and the cancellation of an agreement can also be deduced from the conduct of the parties after the cancellation. The signature of a party to a contract is of an evidentiary weight only and does not constitute a constitutional condition for its entry into effect. Here, despite the absence of the company's signature on the cancellation notice it can be deduced from the behavior of the parties that the agreement was canceled by consent of both parties.