Signing a contract is a crucial step in which the parties to the contract express their agreement to the content and terms of the contract. A person who has signed a contract will have a very difficult time in the future claiming that he did not understand it or did not agree to its terms, especially if the contract is written in a language that the signer understands.
For this very reason, it is important to fully understand what you are signing and what you are committing to, in order to avoid claims in this regard. Breach of contract and management Financial claim or Civil lawsuit (and in exceptional cases even Class action lawsuit) in court.
Reading the contract in full before signing any contract
Imagine the following situation: A person purchases a new car, and as part of the purchase process is required to sign a contract that specifies and confirms the ordered model, the vehicle's specifications, the payment terms, the vehicle's delivery date, etc. Before signing the contract, the buyer did not bother to read the contract in its entirety. The time has come to receive the car, and the buyer discovers that he has received a car with different specifications than what he thought he was actually purchasing, even though according to the contract, the company provided the buyer with the correct specifications.
הסיטואציה הזאת שבה צד לחוזה "מופתע" בשלב מאוחר למועד חתימת חוזה בין הצדדים, היא סיטואציה נפוצה מאוד ונובעת בעיקר ממנטליות ה"יהיה בסדר" שמאוד רווחת במדינתנו. בפועל גישה זו מובילה להרבה מאוד הליכים משפטיים, שחלקם היו יכולים להתייתר מלכתחילה עם טרם חתימת חוזה הצדדים היו משקיעים זמן וקוראים אותו.
It is very important to read every contract from beginning to end before signing it (preferably more than once). If the contract has appendices, it is very important to read them as well. Don't skip reading the contract, even if it's a very complex one. You may not understand everything (and I'll get to that later), but you will likely understand a significant portion of the contract, or most of it.
Don't skip reading the addenda either. Sometimes the addenda to a contract include material details that you must be familiar with and approve. Signing a contract without reading the addenda can lead to the exact same situation as if you hadn't read the contract at all.
What do you do if you don't understand all the clauses of the contract?
Simply reading the contract before signing it is not enough. It is very important to make sure you understand exactly what you are signing.. אם נתקלתם בסעיף שאתם לא מבינים (בין אם הוא כתוב בשפה שאתם לא מבינים, בין אם הוא כולל מונחים טכניים/מקצועיים שאתם לא מכירים, ובין אם הוא כתוב בשפה "גבוהה מדי") חשוב מאוד לפנות לגורם מקצועי, כגון Contract lawyer Or another professional to explain the meaning to you (if the section includes, for example, a term from the medical field, it is worth consulting with a doctor from that field to explain what the term means).
You must not sign any contract if you do not understand its contents, even if you have read it several times from beginning to end. As I explained earlier, if you signed a contract, in court you will be considered to have understood and agreed to all the terms of the contract.
What to do if you do not understand all the clauses of the agreement
The desired course of action in this case is to mark all the clauses/terms that you do not understand with a marker, so that the clauses stand out and it will be clear to you what you need to check before signing a contract. In the next step, you should consult with the relevant professional (usually a lawyer). After you understand the meaning of the unclear clause or clauses, you will need to make a decision as to whether or not you agree with the content of the clauses. If you do not agree with the content of the clauses, you should demand that the wording be changed. If the other party does not agree to change the wording, it is recommended that you refrain from signing the contract. Signing a contract under these circumstances will leave you at a disadvantage because you will be signing something that is probably not acceptable to you or is not in your best interest (or, at the very least, not understandable to you).
It is not possible to cancel a contract due to the transaction being unviable (except in exceptional cases).
Before signing any contract, you must check and make sure that the contract is worth it to you. That is, that the terms of the contract are favorable to you. For example: If you decided to purchase an apartment for 2 million shekels from a contractor and after the purchase you discovered that the value of the apartment is no more than 1.5 million shekels, you will not be able to demand Canceling a deal with a contractor Because your mistake is in the viability of the deal.
In this regard, Section 14 of the Contracts Law states as follows:
(a) A person who entered into a contract due to an error and it can be assumed that but for the error he would not have entered into the contract and the other party knew or should have known about it, may cancel the contract.
(b) 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 considers 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.
(c) A mistake is not a ground for rescission of the contract under this section, if the contract can be performed by correcting the mistake and the other party has notified, before the contract is rescinded, that he is willing to do so.
(ד) "טעות", לענין סעיף זה וסעיף 15 – בין בעובדה ובין בחוק, except for an error that is only in the feasibility of the transaction.
This means that after signing a contract, it is possible to demand the cancellation of the contract. Due to a mistake That led to the parties entering into a contract, but not in the case of a mistake in the feasibility of the transaction. In these cases, your demand to cancel a transaction will usually be rejected in court.
For this reason, you must carefully check that the service or product you are purchasing is indeed worth the price you intend to pay. If we return to the example of purchasing an apartment, you can use the opinion of an appraiser to assess the value of the apartment before signing a contract and before you actually purchase it.
If you are purchasing a used vehicle, you can check the value of the vehicle according to the Levi Yitzhak price list.
The costs you are expected to pay for breach of contract
If, after signing a contract, it turns out that you did not act in accordance with its provisions, and in fact violated the contract, you may end up in court. Just going to court as a defendant will cost you quite a bit of money and time. The higher the amount of the claim against you, the Lawyer's fees The amount you will have to pay for legal representation is likely to be higher.
Furthermore, if the court determines that you violated the agreement, you are expected to pay the plaintiff. Compensation for the damages you caused, damages for breach of contract, damages for Mental anguish, and in addition to everything, legal costs and attorney fees to cover the plaintiff's expenses.
All of these expenses can usually be prevented by reading and understanding the contract before signing a contract on any subject.
In conclusion
Before signing a contract on any subject, you should read the contract carefully in its entirety, including any accompanying annexes. The more important the subject/amount the contract deals with, the more likely it is to be read more than once.
After reading the contract, make sure you understand the terms/conditions of the contract. If something is unclear, you should not sign the contract. In such cases, seek advice from a contract law attorney or request that the contract be rewritten to something that is clear and understandable to you.
Under no circumstances can a contract be signed unless you have re-conducted a survey and verified that the deal is financially viable for you. Remember – you usually cannot cancel the contract on the grounds of lack of economic viability.
It is very important to follow all of these steps carefully so that you are not accused of breach of contract, and so that you do not have to go to court.
Frequently asked questions about signing a contract
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Can a contract be cancelled after signing it?
Cancellation of the contract can be carried out in accordance with the instructions Contract law or in accordance with the provisions of the contract itself.
In the event that there is a dispute regarding the right to cancel the contract, there may be no choice but to file a lawsuit in court to obtain Declaratory judgment Regarding the cancellation of the contract. -
Can the terms of the contract be changed after signing the contract?
If there is agreement from all signatories to the contract to change the terms of the contract, it can be changed.
If there is no agreement, the terms of a contract cannot be changed after it is signed. -
Does a contract always have to be signed?
No. There is a possibility of mining Oral contract.
The problem with oral contracts is the difficulty of proving the parties' agreements (it is recommended in these cases to record/script the parties to the contract). -
Can a dispute regarding the signing of a contract be resolved out of court?
Yes. It is possible to hold a mediation or arbitration process.
