A group of friends set up a joint venture to locate turbulences during flight. The signed founders agreement set that the application will be based on software developed by one of the entrepreneurs, but the company is granted unrestricted use of the software and ownership of all products produced therefrom. The agreement was later amended to add another entrepreneur but not signed and the developer demanded, inter alia, payment from the company contended that the non-signature of the amended agreement cancelled the previous agreements.
The Court rejected the contention and held that a founders agreement does not require signature it in order to become effective, certainly in the case of an agreement almost identical to a previous agreement and when the founders showed no intention of changing the nature of the agreement. The absence of signature may have a meaning only if it is proven that this was made intentionally, due to a change in the consent of the parties.