Legal Question in Business Law in Massachusetts
I purchased a heavily discounted item from a vendor's website. The order was confirmed, my money accepted, and the item shipped to me. Then the vendor refunded my account and claimed it was an error, asking me to ship it back. What is my standing?
5 Answers from Attorneys
It is a completed purchase. You made an offer, he accepted it. You paid him and he delivered the product to you.
It is a completed transaction. He can sue for its return claiming it was a mistake and there was no meeting of the minds but it is not likely to be successful.
The fact he refunded the money is irrelevant unless you agree to void the transaction.
There are always exceptions - based on the positions/knolwedge of the parties, types of items, types of industries - but basic contract law would be on your side. The item was offered by the vendor, you accepted and paid the consideration, the vendor accepted your payment and completed the contract by delivery. If the item sent was the item offered, pretty sound argument that its yours.
Mr. Roth and Mr. Flynn are probably right, but there are circumstances under which you would have to return the item. For example, if you took advantage of what you knew was typo in the price, the seller would probably have the right to unwind the transaction.
The attorneys are right; the transaction is a done deal. The vendor trying to change his mind, even if there was a typo in the price, is his mistake, not yours. Don't be intimidated. Consult with an attorney in your area for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
I recently handled a case quite similar to this, except the seller caught the mistake prior to delivering the product, and then refunded the purchase price and refused to deliver. The seller then sued in MA court (the buyer was out of state) for a declaratory judgment rescinding the sale. The argument was legally weak and the case settled on favorable terms after we moved for summary judgment on grounds the sale was consummated and not the product of mutual mistake. Unilateral mistake is not enough as a matter of law to rescind an otherwise valid sales contract (unless the non-mistaken party knew the other was mistaken but remained silent in order to capitalize on the other�s error).