Legal Question in Technology Law in Oregon
Is an Internet Sale a binding contract ?
I recently (about 1 week ago) purchased an item through a website. Since that time I have received a confirmation e-mail for the order (the same day) and not been contacted by the company since. Today I called the company to inquire as to the status of my order and the person I talked to told me that he would have to cancel my order because the price I ordered the item for was a ''typographical mistake''. Basically whoever listed the item on the website posted the price incorrectly, and now they are saying they are going to cancel my order. I want to know if they can legally do this. They have already billed my credit card for the price that was listed on the website at the time I placed the order. Is this not a binding contract?
Thankyou in advance.
2 Answers from Attorneys
Re: Is an Internet Sale a binding contract ?
If you knew or reasonably should have known that the asking price was an error (e.g., if a $10,000 item was being offered for $100) then the seller would prevail in any court dispute over this transaction. If you did not know the posted price was an error *and* if a reasonable person in your position would not have known, then you would most likely prevail. Your damages would be either (a) possession of the item or of an identical replacement at the listed price, or (b) money damages equal to the value of the item minus any amount that has already been refunded to you.
Re: Is an Internet Sale a binding contract ?
My earlier response contained an error which I need to correct. My initial response ended with the following sentence:
"Your damages would be either (a) possession of the item or of an identical replacement at the listed price, or (b) money damages equal to the value of the item minus any amount that has already been refunded to you."
Part (b) is incorrect. It should say "money damages equal to the actual value of the item minus the agreed price, plus any portion of the purchase price that has not been refunded to you."
Sorry about the mixup.
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