A cooperation agreement was signed between a project company and a company for execution of metal works and welding. When one suspected that the agreement was breached by the other, they dissolved the agreement and executed an agreement to cancel the first agreement, in which it was recorded that none of the companies had any financial or legal claims against the other. Later, one party discovered that the other withdrew funds and sought to cancel the mutual waiver due to deception and mistake.
The Court rejected the claim and held that in principle it is possible to cancel an agreement due to a mistake - a mistaken assessment of the reality. However, a mistake in the viability of the transaction does not allow the cancellation of an agreement. Where a person is aware that he has no knowledge as to a particular item of importance or that his knowledge is incomplete, and nevertheless decides to execute an agreement, he is not entitled to later contend a mistake in relation with this data, as he has taken the risk as to such data and it is a mistake in the viability of the transaction, which does not justify cancellation of the agreement.