Cancellation of a transaction to purchase a used car from a private individual with the assistance of lawyer Eddie Blitstein
Attorney Eddie Blitstein has many years of experience in lawsuits dealing with the issue of canceling a used car purchase transaction from a private individual or a car dealer, and even against the largest car importers in Israel.
Attorney Eddie Blitstein has succeeded on many occasions in leading to the cancellation of transactions even in the most complex and difficult cases. If you need Professional legal assistance In this area, you are invited to contact Attorney Eddie Blitstein by phone.
The difference between canceling a used car purchase transaction from a private individual versus a car dealer
When talking about canceling a used car purchase transaction from a private individual, you need to understand that there are fundamental differences in relation to a car dealer. While a car dealer who sells a used car is obligated to deliver to the buyer Disclosure Form (By virtue of the vehicle dealer's obligation under Used Car Sales Law, which is sometimes also known as Due Disclosure Law) An individual is not subject to this law and is not obligated to provide the purchaser with a due disclosure form.
As part of the due disclosure form, the car dealer is obligated to disclose to the buyer any defect that he knows exists in the vehicle, including the number of previous owners, how many kilometers the vehicle has traveled until the vehicle is sold, and more.
Court rulings have even expanded the obligations of car dealers and determined that in certain cases, such as Selling a legally lost vehicle or Selling a car after an accident Even if the car dealer was unaware of this, he would still be liable and the court would order the transaction to be canceled.
i.e Vehicle dealer's duty of disclosure Broader than an individual And the obligations that apply to car dealers do not apply to private sellers.
For this reason, car sellers who are private individuals and not car dealers sometimes assume that they can hide information from used car buyers. This is an incorrect assumption that is inconsistent with other legal provisions that apply to used car transactions between private individuals.
Another important thing to know is that it is not possible to cancel a transaction within 14 days of receiving the vehicle. The Consumer Protection Law and its provisions are not relevant to used vehicle transactions between private individuals. In any case in which you want to cancel the used vehicle purchase transaction, you will have to file a lawsuit with the court (assuming that the seller does not voluntarily agree to cancel the transaction, and the chance of this happening almost always tends to zero).
Cancellation of a transaction to purchase a second-hand vehicle from a private individual under the Contracts Law
Provisions also apply to second-hand vehicle purchase/sale transactions. Contract lawThere are several sections in this law that may assist a used car purchaser who believes they have been defrauded to demand the cancellation of a second-hand car purchase transaction from a private individual.
Article 12 of the Contracts Law establishes the obligation to act in good faith before concluding a contract:
12. (A) In negotiations leading up to the conclusion of a contract, a person must act in an acceptable manner and in good faith.
(on) A party who did not act in an acceptable manner and in good faith is liable to the other party. Compensation for the damage caused to him עקב המשא ומתן או עקב כריתת החוזה, והוראות סעיפים 10, 13 ו-14 לחוק החוזים (תרופות בשל הפרת חוזה), תשל"א-1970, יחולו בשינויים המחוייבים.
Section 39 of the Contracts Law provides a similar provision after the conclusion of the contract:
39. In the performance of an obligation arising from a contract, one must act in an acceptable manner and in good faith; the same applies to the exercise of a right arising from a contract.
The combination of these two legal provisions requires the seller to disclose to the buyer any defect in the vehicle by virtue of Duty of good faith. Breach of the duty of good faith may be grounds for demanding the cancellation of a transaction to purchase a used car from a private individual.
There are two additional sections in the Contracts Law that may help to demand the cancellation of a transaction between two private individuals. These are sections that deal with mistake and deception.
14.(a) A person who entered into a contract due to an error and it can be assumed that without the error he would not have entered into the contract and the other party knew or should have known about it, is entitled to cancel the contract.
(on) If a person who entered into a contract due to a mistake and it can be assumed that but for the mistake he would not have entered into the contract and the other party did not know and should not have known about it, the court may, at the request of the party who made the mistake, cancel the contract, if it deems it just to do so; if it does so, the court may order the party who made the mistake to pay compensation for the damage caused to the other party due to the conclusion of the contract.
(third) An error is not a ground for rescission of the contract under this section, if the contract can be performed by correcting the error and the other party has notified, before the contract is rescinded, that he is willing to do so.
(d) "טעות", לענין סעיף זה וסעיף 15 – בין בעובדה ובין בחוק, להוציא טעות שאינה אלא בכדאיות העסקה.
15. A person who entered into a contract due to an error resulting from deception by the other party or someone else on his behalf may Cancel the contract; לענין זה, "הטעיה" – לרבות אי-גילוין של עובדות אשר לפי דין, לפי נוהג או לפי הנסיבות היה על הצד השני לגלותן.
Deception in the sale of a car Can be grounds for demanding the cancellation of a transaction to purchase a used car from a private individual. The cancellation of the transaction can also be demanded due to a mistake.
Cancellation of a transaction to purchase a second-hand vehicle from a private individual under the Sales Law
It is also important to know the instructions Law of Sale Because also by virtue of this law, it is possible to demand the cancellation of a transaction to purchase a second-hand vehicle from a private individual.
Similar to the Contracts Law, the Sales Law also contains a provision requiring that one act in good faith.
6. An obligation arising from a contract of sale must be performed in an acceptable manner and in good faith; the same applies to the exercise of the right arising from the contract.
בנוסף, חוק המכר מגדיר מהי "אי התאמה" וקובע שניתן לדרוש את ביטולה של העסקה עקב גילוי אי התאמה. לדוגמה: אם המוכר לא גילה לכם שברכב יש תקלה מהותית או שהרכב היה מעורב בתאונה אז אפשר לטעון שקיימת אי התאמה.
Article 11 defines non-conformity as follows:
11. The seller has not fulfilled his obligations if he has delivered –
(1) Only part of the sale or a larger or smaller quantity than agreed upon;
(2) A different property or property of a different type or description than agreed upon;
(3) Property that does not have the quality or characteristics necessary for its normal or commercial use or for a special purpose implied by the agreement;
(4) Property that, in terms of its type, description, quality or features, does not correspond to the model or example presented to the buyer, unless it was presented without accepting a guarantee of conformity;
(5) Property that is otherwise not in accordance with what was agreed upon between the parties.
Section 16 of the Sales Law states that the vehicle purchaser may rely on a hidden inconsistency (a inconsistency that was not discovered at the time of the transaction, and as a result, demand the cancellation of the transaction):
16. If the non-conformity arises from facts that the seller knew or should have known about at the time of the conclusion of the contract and did not disclose them to the buyer, the buyer is entitled to rely on it notwithstanding what is stated in sections 14 and 15 or in any agreement, provided that he gave the seller notice of it immediately after discovering it.
Court ruling regarding the cancellation of a transaction to purchase a second-hand vehicle from a private individual
A review of court rulings regarding the cancellation of a transaction to purchase a used vehicle from a private individual will reveal that they usually deal with the same legal provisions, and they all mention the provisions of the Contracts Law or the provisions of the Sales Law (they usually mention both laws).
For example, in the framework of תאד"מ 28250-09-23 יונתן סמירונב נ' משה ישראלי (Judgment from 2025):
In the lawsuit The plaintiff claimed that on August 13, 2017, he purchased a used Honda Civic, which was registered in the name of the defendant's late wife, following an advertisement made by the defendant on the Internet on August 8, 2017, for the sum of NIS 11,300. The plaintiff claimed that the vehicle was advertised as a 2001 vehicle with only 200,000 kilometers on the clock, but it was later discovered after it was sold to the plaintiff that the vehicle had 10 previous owners, including the ownership of a driving school, that the vehicle had 422,722 kilometers on the clock at the time of sale, and that the defendant provided the plaintiff with a vehicle license showing This data is blurry.Yes, the vehicle suffered from mechanical problems, until a year and a half after its purchase, it was disabled due to engine failure and taken off the road.
…
יחד עם זאת, גם על מוכר רכב פרטי חלות חובות גילוי ותום לב, מכוח הוראות חוק החוזים [חלק כללי], תשל"ג- 1973, וחוק המכר, תשכ"ח- 1968 והפסיקה שעסקה בנדון.
…
hall, The seller is obligated to disclose to the buyer material details of the transaction, including any defects or malfunctions known to him in relation to the vehicle, to act in good faith and to avoid misrepresentation. Above all, the duty to act fairly and in good faith during the negotiations for the sale of the vehicle is weakened. (ת"ק (נת') 654-11-18 Levi N. Zabarsky (24.6.2019), ולת"ק (חי') 26985-07-23 Itach v. Levi (17.5.24)).
In conclusion
Although an individual is not subject to the same obligations as a car dealer when selling a used vehicle, this does not mean that an individual is entitled to mislead a seller and not inform him of defects known to him in the vehicle he intends to sell.
If an individual actually sold a vehicle that had significant defects or that was involved in an accident, and the seller did not disclose this to the buyer, that individual may find themselves in legal trouble because the seller will be entitled to demand the cancellation of the transaction to purchase a used vehicle from the individual.
The initial demand will be directed to the seller via Warning letter from a lawyerAnd if the seller does not agree to cancel the transaction, a lawsuit will be filed against him in court.
