Beware Before You Sign: When a Free Prize Becomes a Legal Obligation

In recent years, marketing approaches have spread through restaurants, shopping centres and public places. They often begin with an innocent-sounding message: “Congratulations, you have won two free nights at the Dead Sea.” The person is then invited to a company office to collect the prize, often with a spouse or family member, supposedly for a short introductory event.

What follows may be very different. The visitor can find themselves in a sales session lasting several hours, hearing about investment opportunities, tourism-use rights, hotel weeks or shares, together with promises of financial returns and easy rental or resale.

The person may be pressed to decide immediately with statements such as “the offer ends today” or “you will lose the opportunity if you leave.” They may then be asked to sign a lengthy contract, pay a deposit and sometimes sign promissory notes or other financial instruments for the remaining amount.

Not every tourism-use agreement is unlawful. Some may be legitimate when offered by licensed companies with real projects. The danger arises when a consumer does not read the entire contract, signs under pressure, or relies on verbal promises that do not appear in the written agreement.

The risk increases when promissory notes are signed without understanding their legal effect, or when the project and the company’s ownership of it are not verified. The consumer may later discover that resale or rental is not as promised.

Court cases involving such practices have produced different outcomes depending on the facts and evidence, including allegations of fraud, breach of trust or financial harm, as well as contract rescission, settlements and other judgments.

Before signing, ask: Have I read the complete contract? Do I understand every clause? Have I consulted a lawyer? Does the project actually exist? Is the company registered and licensed? Are the promises made to me written into the contract? Can I withdraw if I change my mind? Do I understand the consequences of signing promissory notes that may be enforced if I do not pay?

A signature made today can create an obligation worth thousands of dinars tomorrow. A promissory note is not a formality; it may be an enforceable instrument with serious legal consequences.