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Do I Have a Binding Contract?



Michael Kipper
11/22/2004 10:56:27 PM


Hello,
I recently went online to purchase a Hewlett-Packard Pavilion laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded through the
checkout process and placed my order. What happened, however, was that the
laptop showed up on the final bill with a price of $0.00. The total price
reflected only the price of the bag, not the laptop, even though both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing information,
errors or misprints may occur. HP cannot confirm the price of a Product
until after you order the Product. Notwithstanding anything contained in
this section 2, in the event that a Product is listed at an incorrect price
or with incorrect information due to an error in pricing or product
information, HP shall have the right, at our sole discretion, to refuse or
cancel any orders placed for that Product. In the event that a Product is
priced in error or a Product information error occurs, HP may, at our sole
discretion, either contact you for instructions, cancel your order and
notify you of such cancellation, and/or correct the error on our web site.
Orders are not binding on HP until accepted by HP. HPs acceptance of an
order is evidenced by return e-mail from HP indicating that Customers
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted. However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as agreed upon
by myself and HP when I made the purchase? Do we have a purchase contract?
Thanks,
Michael
Thunder Bay, Ontario, Canada
 
 
"The King of Trolls"
11/23/2004 12:05:22 AM


Yes and you are also needed to help my family get our fortune out of
Nigeria. We will reward you greatly with virtually no financail risk to
yourself. Email me for details.


"Michael Kipper" <mkipper@rogers.com> wrote in message
news:Xns95A9B6821E03Fmkipperrogerscom@24.66.94.159...

Hello,
I recently went online to purchase a Hewlett-Packard Pavilion laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded through the
checkout process and placed my order. What happened, however, was that the
laptop showed up on the final bill with a price of $0.00. The total price
reflected only the price of the bag, not the laptop, even though both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing information,
errors or misprints may occur. HP cannot confirm the price of a Product
until after you order the Product. Notwithstanding anything contained in
this section 2, in the event that a Product is listed at an incorrect
price
or with incorrect information due to an error in pricing or product
information, HP shall have the right, at our sole discretion, to refuse or
cancel any orders placed for that Product. In the event that a Product is
priced in error or a Product information error occurs, HP may, at our sole
discretion, either contact you for instructions, cancel your order and
notify you of such cancellation, and/or correct the error on our web site.
Orders are not binding on HP until accepted by HP. HP's acceptance of an
order is evidenced by return e-mail from HP indicating that Customer's
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted. However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as agreed upon
by myself and HP when I made the purchase? Do we have a purchase contract?
Thanks,
Michael
Thunder Bay, Ontario, Canada
 
 
"McGyver"
11/22/2004 4:18:38 PM




"Michael Kipper" <mkipper@rogers.com> wrote in message
news:Xns95A9B6821E03Fmkipperrogerscom@24.66.94.159...

Hello,
I recently went online to purchase a Hewlett-Packard Pavilion
laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded
through the
checkout process and placed my order. What happened, however, was
that the
laptop showed up on the final bill with a price of $0.00. The total
price
reflected only the price of the bag, not the laptop, even though
both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing
information,
errors or misprints may occur. HP cannot confirm the price of a
Product
until after you order the Product. Notwithstanding anything
contained in
this section 2, in the event that a Product is listed at an
incorrect price
or with incorrect information due to an error in pricing or product
information, HP shall have the right, at our sole discretion, to
refuse or
cancel any orders placed for that Product. In the event that a
Product is
priced in error or a Product information error occurs, HP may, at
our sole
discretion, either contact you for instructions, cancel your order
and
notify you of such cancellation, and/or correct the error on our web
site.
Orders are not binding on HP until accepted by HP. HP's acceptance
of an
order is evidenced by return e-mail from HP indicating that
Customer's
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted.
However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as
agreed upon
by myself and HP when I made the purchase? Do we have a purchase
contract?
Thanks,
Michael
Thunder Bay, Ontario, Canada
This is a U.S. answer. I don't know anything about the law in Canada.
If the law in Ontario Canada is the same as in California, then yes
you have a contract, but it may be rescinded by HP on the basis of
unilateral mistake. If one party makes a mistake and the other knows
about it, the mistaken party may rescind. That is a very general
answer on a complex topic (rescission for unilateral mistake). There
are wrinkles concerning confirmation of the price, whether the
mistaken party may rescind without the aid of a court, etc. And the
fact that the rescission would apply to only part of the contract is a
big wrinkle, which I have not researched. But my opinion is that HP
is not obligated to ship you a free computer.
McGvyer
 
 
"Falky foo"
11/23/2004 3:50:23 AM


I would find it doubtful that a court would uphold that "contract." They
routinely dismiss them for printing errors and such. This would probably be
along the same lines.
 
 
robynari@juno.com (rottenberg)
11/23/2004 10:56:57 AM


I'd be surprised to find this was a contract. Besides the obvious
"error" defense, there is an element of "consideration" missing - that
you gave something as part of your end of the contract. This seems
more like a skewed version of a gift - you ask for something, the
asked person says he'll just give it to you, and never does. The 2nd
person, by offering to do something gratuitously is not entering into
a contract.
Michael Kipper <mkipper@rogers.com> wrote in message news:<Xns95A9B6821E03Fmkipperrogerscom@24.66.94.159>...
Hello,
I recently went online to purchase a Hewlett-Packard Pavilion laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded through the
checkout process and placed my order. What happened, however, was that the
laptop showed up on the final bill with a price of $0.00. The total price
reflected only the price of the bag, not the laptop, even though both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing information,
errors or misprints may occur. HP cannot confirm the price of a Product
until after you order the Product. Notwithstanding anything contained in
this section 2, in the event that a Product is listed at an incorrect price
or with incorrect information due to an error in pricing or product
information, HP shall have the right, at our sole discretion, to refuse or
cancel any orders placed for that Product. In the event that a Product is
priced in error or a Product information error occurs, HP may, at our sole
discretion, either contact you for instructions, cancel your order and
notify you of such cancellation, and/or correct the error on our web site.
Orders are not binding on HP until accepted by HP. HP?s acceptance of an
order is evidenced by return e-mail from HP indicating that Customer?s
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted. However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as agreed upon
by myself and HP when I made the purchase? Do we have a purchase contract?
Thanks,
Michael
Thunder Bay, Ontario, Canada
 
 
cj.green@worldnet.att.net (Christopher Green)
11/23/2004 11:51:32 AM


"McGyver" <Greyprof@msn.com> wrote in message news:<30fdviF2v4t4sU1@uni-berlin.de>...


"Michael Kipper" <mkipper@rogers.com> wrote in message
news:Xns95A9B6821E03Fmkipperrogerscom@24.66.94.159...

laptop from
through the
that the
price
both were
information,
Product
contained in
incorrect price
refuse or
Product is
our sole
and
site.
of an
Customer's
However,
agreed upon
contract?

This is a U.S. answer. I don't know anything about the law in Canada.
If the law in Ontario Canada is the same as in California, then yes
you have a contract, but it may be rescinded by HP on the basis of
unilateral mistake. If one party makes a mistake and the other knows
about it, the mistaken party may rescind. That is a very general
answer on a complex topic (rescission for unilateral mistake). There
are wrinkles concerning confirmation of the price, whether the
mistaken party may rescind without the aid of a court, etc. And the
fact that the rescission would apply to only part of the contract is a
big wrinkle, which I have not researched. But my opinion is that HP
is not obligated to ship you a free computer.
McGvyer
It appears that Canada has a well-developed understanding of the
notion of unilateral mistake that applies exactly to the OP's
situation.
"... the equitable jurisdiction of the courts to relieve against
mistake in contract comprehends situations where one party, who knows
or ought to know of another's mistake in a fundamental term, remains
silent and snaps at the offer, seeking to take advantage of the
other's mistake. In such cases, it would be unconscionable to enforce
the bargain and equity will set aside the contract."
[Dexter v. Nova Scotia, quoted in Aujla and Sanders, "The Cost of
Unclear Contracts" (2004), online at
http://www.blgcanada.info/news/index.asp]
So it seems HP would have a well-founded case for rescission in the
event that the OP were to attempt to press the issue.
--
Not a lawyer,
Chris Green
 
 
gordonb.go6fw@burditt.org (Gordon Burditt)
11/23/2004 8:03:50 PM


I'd be surprised to find this was a contract. Besides the obvious
"error" defense, there is an element of "consideration" missing - that
you gave something as part of your end of the contract. This seems
more like a skewed version of a gift - you ask for something, the
asked person says he'll just give it to you, and never does. The 2nd
person, by offering to do something gratuitously is not entering into
a contract.
The bill for the carrying case was not zero, so for the sale as a
whole, I presume that there was consideration as the bill was paid
or will be. Sales where one item is free with purchase of another
item are not that uncommon, and I presume that if you buy something
advertised "X free with purchase of Y", where Y costs $Z, and you
paid $Z, and you don't get X, you have a valid complaint of the
store not delivering X, not a case of the store reneging on a gift.
The case you describe is nowhere near close to an advertised "X
free with purchase of Y", though, and the error defense should be
valid.
I recently went online to purchase a Hewlett-Packard Pavilion laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded through the
checkout process and placed my order. What happened, however, was that the
laptop showed up on the final bill with a price of $0.00. The total price
reflected only the price of the bag, not the laptop, even though both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing information,
errors or misprints may occur. HP cannot confirm the price of a Product
until after you order the Product. Notwithstanding anything contained in
this section 2, in the event that a Product is listed at an incorrect price
or with incorrect information due to an error in pricing or product
information, HP shall have the right, at our sole discretion, to refuse or
cancel any orders placed for that Product. In the event that a Product is
priced in error or a Product information error occurs, HP may, at our sole
discretion, either contact you for instructions, cancel your order and
notify you of such cancellation, and/or correct the error on our web site.
Orders are not binding on HP until accepted by HP. HP?s acceptance of an
order is evidenced by return e-mail from HP indicating that Customer?s
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted. However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as agreed upon
by myself and HP when I made the purchase? Do we have a purchase contract?
A related issue: Suppose this transaction had played out a little
differently, and HP actually SHIPPED the laptop (or suppose it
happened at a brick-and-mortar store, and I walked out with it).
Does HP have the right to charge my credit card again for the laptop?
Without notifying me in advance? If I refuse to pay, do they have
a right to demand I ship back the laptop?
Gordon L. Burditt
 
 
"David W."
11/23/2004 9:37:45 PM


gordonb.go6fw@burditt.org (Gordon Burditt) wrote in
news:co0536$pcb@library1.airnews.net:
I'd be surprised to find this was a contract. Besides the obvious
"error" defense, there is an element of "consideration" missing - that
you gave something as part of your end of the contract. This seems
more like a skewed version of a gift - you ask for something, the
asked person says he'll just give it to you, and never does. The 2nd
person, by offering to do something gratuitously is not entering into
a contract.
The bill for the carrying case was not zero, so for the sale as a
whole, I presume that there was consideration as the bill was paid
or will be. Sales where one item is free with purchase of another
item are not that uncommon, and I presume that if you buy something
advertised "X free with purchase of Y", where Y costs $Z, and you
paid $Z, and you don't get X, you have a valid complaint of the
store not delivering X, not a case of the store reneging on a gift.
The case you describe is nowhere near close to an advertised "X
free with purchase of Y", though, and the error defense should be
valid.
This doesn't pass the "reasonable person" test, which I'm sure HP would
assert, and the court would most likely apply. A reasonable person would
not expect that if they purchased a $30 carrying case, they'd receive a
free $1200 computer.
The court will also generally hold that a contract that is unfairly
lopsided due to a clerical or typographical (or software) error is not a
valid contract.
I recently went online to purchase a Hewlett-Packard Pavilion
laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded
through the
checkout process and placed my order. What happened, however, was
that the laptop showed up on the final bill with a price of $0.00.
The total price reflected only the price of the bag, not the laptop,
even though both were listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
I received the email, stating that my order had been accepted.
However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as
agreed upon
by myself and HP when I made the purchase? Do we have a purchase
contract?
A related issue: Suppose this transaction had played out a little
differently, and HP actually SHIPPED the laptop (or suppose it
happened at a brick-and-mortar store, and I walked out with it).
Does HP have the right to charge my credit card again for the laptop?
Without notifying me in advance? If I refuse to pay, do they have
a right to demand I ship back the laptop?
My guess is that the law would allow HP to correct the mistake at their
own cost... most likely, a reasonable company would allow you to purchase
the laptop at the price that was listed on the website, or allow you to
ship it back to them at their expense.
Reverse the situation... if it were your mailorder company, and a
customer brought this issue to you, how would you want to handle it?
 
 
"McGyver"
11/24/2004 10:11:06 AM


Rottenberg:
The contract is valid, but may be rescinded. There is no problem with
consideration. The amount promised and/or paid for the case is
consideration supporting the entire contract. There is no need for
each element of performance to be supported by a separate statement or
amount of consideration. And there is no requirement that the total
consideration be reasonable or fair. (with a few irrelevant
exceptions).
David W:
Contracts are not required to be reasonable or fair. (with a few
irrelevant exceptions). There is no reasonable person test regarding
whether the original contract was valid. The original contract was
clearly valid. The issue is whether HP has a right to rescind the
contract. The right to rescind will in some cases turn on whether the
non-mistaken party was on reasonable notice, from the disparity in
price, that a mistake has been made. That issue won't apply in this
case because the buyer admits knowing that the $0 price was not meant
by HP, and therefore was a mistake. So it won't matter what a
reasonable person would have thought.
A contract which is unfairly lopsided due to a clerical or
typographical (or software) error is a
valid contract, but there may be a right of rescission or reformation.
A related issue: Suppose this transaction had played out a little
differently, and HP actually SHIPPED the laptop (or suppose it
happened at a brick-and-mortar store, and I walked out with it).
Does HP have the right to charge my credit card again for the
laptop?
Without notifying me in advance? If I refuse to pay, do they have
a right to demand I ship back the laptop?
My guess is that the law would allow HP to correct the mistake at
their
own cost... most likely, a reasonable company would allow you to
purchase
the laptop at the price that was listed on the website, or allow you
to
ship it back to them at their expense.
Maybe. (Bear with me on this) If the buyer intended to pay $0 for
the computer, then changing the price from $0 to $1,200 is within the
court's power only through a concept called Reformation. By that
method the court may correct the price to the price the parties meant
to agree to. This method is commonly used when there is a typo or
clerical error and the written contract doesn't reflect what the
parties agreed to, and later one of them is taking advantage of the
error by pretending that it accurately reflects the agreement. But if
the buyer intended to pay $0, then reformation doesn't work. Only
Rescission works. Rescission results in undoing a valid contract, not
correcting it's terms. On the other hand, if the court can be
convinced that the buyer meant to agree to $1,200, the reformation
would work.
McGyver


"rottenberg" <robynari@juno.com> wrote in message
news:cbc39661.0411231056.5b97fb9a@posting.google.com...

I'd be surprised to find this was a contract. Besides the obvious
"error" defense, there is an element of "consideration" missing -
that
you gave something as part of your end of the contract. This seems
more like a skewed version of a gift - you ask for something, the
asked person says he'll just give it to you, and never does. The
2nd
person, by offering to do something gratuitously is not entering
into
a contract.
Michael Kipper <mkipper@rogers.com> wrote in message
news:<Xns95A9B6821E03Fmkipperrogerscom@24.66.94.159>...
Hello,
I recently went online to purchase a Hewlett-Packard Pavilion
laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded
through the
checkout process and placed my order. What happened, however, was
that the
laptop showed up on the final bill with a price of $0.00. The
total price
reflected only the price of the bag, not the laptop, even though
both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing
information,
errors or misprints may occur. HP cannot confirm the price of a
Product
until after you order the Product. Notwithstanding anything
contained in
this section 2, in the event that a Product is listed at an
incorrect price
or with incorrect information due to an error in pricing or
product
information, HP shall have the right, at our sole discretion, to
refuse or
cancel any orders placed for that Product. In the event that a
Product is
priced in error or a Product information error occurs, HP may, at
our sole
discretion, either contact you for instructions, cancel your order
and
notify you of such cancellation, and/or correct the error on our
web site.
Orders are not binding on HP until accepted by HP. HP?s acceptance
of an
order is evidenced by return e-mail from HP indicating that
Customer?s
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted.
However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as
agreed upon
by myself and HP when I made the purchase? Do we have a purchase
contract?
Thanks,
Michael
Thunder Bay, Ontario, Canada
 
 
robynari@juno.com (rottenberg)
11/24/2004 1:07:03 PM


gordonb.go6fw@burditt.org (Gordon Burditt) wrote in message news:<co0536$pcb@library1.airnews.net>...
I'd be surprised to find this was a contract. Besides the obvious
"error" defense, there is an element of "consideration" missing - that
you gave something as part of your end of the contract. This seems
more like a skewed version of a gift - you ask for something, the
asked person says he'll just give it to you, and never does. The 2nd
person, by offering to do something gratuitously is not entering into
a contract.
The bill for the carrying case was not zero, so for the sale as a
whole, I presume that there was consideration as the bill was paid
or will be. Sales where one item is free with purchase of another
item are not that uncommon, and I presume that if you buy something
advertised "X free with purchase of Y", where Y costs $Z, and you
paid $Z, and you don't get X, you have a valid complaint of the
store not delivering X, not a case of the store reneging on a gift.
The case you describe is nowhere near close to an advertised "X
free with purchase of Y", though, and the error defense should be
valid.
You miss the point entirely. Whether you look at the completed sale
or item-by-item, it's either an error or simply the "promise" to give
a gift, which is not unenforceable as a contact. Looking at the two
items as part of a single sale, the consideration supposedly being the
price paid for the bag, it's still insufficient to establish that
covered such a lopsided, entirely uncommon transaction. Nobody will
argue that there was a bill for the bag, and that that was paid for.
That's my understanding of the above situation. The bill for the
entire transaction is only the price of the bag which can be
established by comparison to other bags which the vendor likely sells
in large numbers. Adding the computer adds substantial value to the
buyer's end of the transaction without proportional increase (any at
all, here) to the value of the so-called promised goods. Your X&Y is
way off. While such sales are not uncommon, the second item is
typically one of secondary value in relation to the item they really
want you to pay for. You buy the computer, and they toss in the bag
for free (or half-price, or whatever). You get the bag when you pay
for the computer not the other way around. You don't get a free new
engine with an inspection. You don't get a stereo system when you buy
a CD. You never buy a Kia, and get a spanking new Lexus. Never
happens. The latest copy of Microsoft Flight Simulator may require
the most up-to-date hardware on the market, but Bill Gates won't
include a free 3Ghz system with every purchase. If you know of a deal
where the reverse is true (and the bag doesn't cost about $400) I'm
sure the rest of us would love to know about it. Even when the
secondary item is close or even equal in value to the first item, such
sales are for low-cost goods two sodas, or two Carvel sundaes on
Wednesday. Some cell phone carriers offer two cellphonesonce you've
agreed to their horrendous calling plans. But in either event, the
lesson is the same you never get the second item free you just get
to pay top dollar for the first item, a transaction that's probably
decent when you figure that you really paid for both items. In the
real world, X is free because they don't want to waste time selling it
to you they're thinking about their big-ticket item, which is Y, and
the big-ticket item is the one that typically has the higher price.
Looking at this item by item, which is more realistic given the
lopsided values of each item, only reinforces how gratuitous a
transaction this was.
I recently went online to purchase a Hewlett-Packard Pavilion laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded through the
checkout process and placed my order. What happened, however, was that the
laptop showed up on the final bill with a price of $0.00. The total price
reflected only the price of the bag, not the laptop, even though both were
listed on the items list.
HP's terms and conditions, which can be found at
<http://www.hp.ca/store/english/terms.php> state:
------------------------------------------------------------
Although HP strives to provide accurate product and pricing information,
errors or misprints may occur. HP cannot confirm the price of a Product
until after you order the Product. Notwithstanding anything contained in
this section 2, in the event that a Product is listed at an incorrect price
or with incorrect information due to an error in pricing or product
information, HP shall have the right, at our sole discretion, to refuse or
cancel any orders placed for that Product. In the event that a Product is
priced in error or a Product information error occurs, HP may, at our sole
discretion, either contact you for instructions, cancel your order and
notify you of such cancellation, and/or correct the error on our web site.
Orders are not binding on HP until accepted by HP. HP?s acceptance of an
order is evidenced by return e-mail from HP indicating that Customer?s
order has been accepted.
------------------------------------------------------------
I received the email, stating that my order had been accepted. However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as agreed upon
by myself and HP when I made the purchase? Do we have a purchase contract?
A related issue: Suppose this transaction had played out a little
differently, and HP actually SHIPPED the laptop (or suppose it
happened at a brick-and-mortar store, and I walked out with it).
Does HP have the right to charge my credit card again for the laptop?
Without notifying me in advance? If I refuse to pay, do they have
a right to demand I ship back the laptop?
Gordon L. Burditt
The second case is different instead of a promised gift, they made
good (if unwittingly). Though nobody would argue the first sale was a
mistake, actually shipping the unpaid for item completes the
transaction and ratifies it, AFAIK. They offered it and gave it up
it's yours. There is a point where people do get stuck with their
mistakes, and the buyer's receipt is that point.
 
 
gordonb.t86e6@burditt.org (Gordon Burditt)
11/24/2004 9:36:37 PM


I'd be surprised to find this was a contract. Besides the obvious
"error" defense, there is an element of "consideration" missing - that
you gave something as part of your end of the contract. This seems
more like a skewed version of a gift - you ask for something, the
asked person says he'll just give it to you, and never does. The 2nd
person, by offering to do something gratuitously is not entering into
a contract.
The bill for the carrying case was not zero, so for the sale as a
whole, I presume that there was consideration as the bill was paid
or will be. Sales where one item is free with purchase of another
item are not that uncommon, and I presume that if you buy something
advertised "X free with purchase of Y", where Y costs $Z, and you
paid $Z, and you don't get X, you have a valid complaint of the
store not delivering X, not a case of the store reneging on a gift.
The case you describe is nowhere near close to an advertised "X
free with purchase of Y", though, and the error defense should be
valid.
You miss the point entirely. Whether you look at the completed sale
or item-by-item, it's either an error or simply the "promise" to give
a gift, which is not unenforceable as a contact.
My point is, it's *NOT* a gift or a promise of a gift. As I said,
the error defense will probably hold.
Looking at the two
items as part of a single sale, the consideration supposedly being the
price paid for the bag, it's still insufficient to establish that
covered such a lopsided, entirely uncommon transaction. Nobody will
argue that there was a bill for the bag, and that that was paid for.
That's my understanding of the above situation. The bill for the
entire transaction is only the price of the bag which can be
established by comparison to other bags which the vendor likely sells
in large numbers. Adding the computer adds substantial value to the
buyer's end of the transaction without proportional increase (any at
all, here) to the value of the so-called promised goods. Your X&Y is
way off.
If you want to claim that there was an error, I agree.
If you want to claim that because the prices are so lopsided
that including X must be a promise of a gift, I disagree.
While such sales are not uncommon, the second item is
typically one of secondary value in relation to the item they really
want you to pay for. You buy the computer, and they toss in the bag
for free (or half-price, or whatever). You get the bag when you pay
for the computer not the other way around. You don't get a free new
engine with an inspection. You don't get a stereo system when you buy
a CD. You never buy a Kia, and get a spanking new Lexus. Never
happens.
That doesn't make the computer a gift or promise of a gift.
Error, yes, gift no.
The latest copy of Microsoft Flight Simulator may require
the most up-to-date hardware on the market, but Bill Gates won't
include a free 3Ghz system with every purchase. If you know of a deal
where the reverse is true (and the bag doesn't cost about $400) I'm
sure the rest of us would love to know about it.
I did see a deal once: free DVD player with purchase of component
video cables for said player. Unfortunately, the (top-of-the-line)
cables really did cost much more than the (cheap) player.
Even when the
secondary item is close or even equal in value to the first item, such
sales are for low-cost goods two sodas, or two Carvel sundaes on
Wednesday. Some cell phone carriers offer two cellphonesonce you've
agreed to their horrendous calling plans. But in either event, the
lesson is the same you never get the second item free you just get
to pay top dollar for the first item, a transaction that's probably
decent when you figure that you really paid for both items. In the
real world, X is free because they don't want to waste time selling it
to you they're thinking about their big-ticket item, which is Y, and
the big-ticket item is the one that typically has the higher price.
Looking at this item by item, which is more realistic given the
lopsided values of each item, only reinforces how gratuitous a
transaction this was.
No, I don't believe the transaction was "gratuitous". Erroneous, yes,
gratuitous, no.
Gordon L. Burditt
 
 
"David W."
11/24/2004 11:15:36 PM


"McGyver" <Greyprof@msn.com> wrote in news:30k168F31jd5rU1@uni-berlin.de:
A related issue: Suppose this transaction had played out a little
differently, and HP actually SHIPPED the laptop (or suppose it
happened at a brick-and-mortar store, and I walked out with it).
Does HP have the right to charge my credit card again for the
laptop?
Without notifying me in advance? If I refuse to pay, do they have
a right to demand I ship back the laptop?
their
purchase
to
Maybe. (Bear with me on this) If the buyer intended to pay $0 for
the computer, then changing the price from $0 to $1,200 is within the
court's power only through a concept called Reformation. By that
method the court may correct the price to the price the parties meant
to agree to. This method is commonly used when there is a typo or
clerical error and the written contract doesn't reflect what the
parties agreed to, and later one of them is taking advantage of the
error by pretending that it accurately reflects the agreement. But if
the buyer intended to pay $0, then reformation doesn't work. Only
Rescission works. Rescission results in undoing a valid contract, not
correcting it's terms. On the other hand, if the court can be
convinced that the buyer meant to agree to $1,200, the reformation
would work.
Thanks for the clarification... I know I tend to get misdirected by logic
and common sense... reasons for which I'd make a terrible lawyer :-)
What happens in the case where the buyer "intended" to pay $0, but the
seller did not intend to sell for $0 (and the price listed was due to a
clerical or software error)? Is this an example of the unstoppable force
meeting an indestructable object?
 
 
Christopher Green
11/25/2004 6:46:44 AM


On Wed, 24 Nov 2004 23:15:36 -0600, "David W." <usenet@walc.com.pluto>
wrote:
"McGyver" <Greyprof@msn.com> wrote in news:30k168F31jd5rU1@uni-berlin.de:
Thanks for the clarification... I know I tend to get misdirected by logic
and common sense... reasons for which I'd make a terrible lawyer :-)
What happens in the case where the buyer "intended" to pay $0, but the
seller did not intend to sell for $0 (and the price listed was due to a
clerical or software error)? Is this an example of the unstoppable force
meeting an indestructable object?
Sounds like a classic unilateral mistake for which rescission would be
granted. Seller gets out of the contract unless the buyer could show
that he really had no reason to know it was a mistake. The price of $0
is so plainly erroneous that any buyer should know it was a mistake.
Canadian court decisions have said in so many words that a buyer must
not intentionally "snap up" such a mistaken offer.
--
Not a lawyer,
Chris Green
 
 
Michael Kipper
11/25/2004 2:00:20 PM


"McGyver" <Greyprof@msn.com> wrote in news:30k168F31jd5rU1@uni-berlin.de:
David W:
Contracts are not required to be reasonable or fair. (with a few
irrelevant exceptions). There is no reasonable person test regarding
whether the original contract was valid. The original contract was
clearly valid. The issue is whether HP has a right to rescind the
contract. The right to rescind will in some cases turn on whether the
non-mistaken party was on reasonable notice, from the disparity in
price, that a mistake has been made. That issue won't apply in this
case because the buyer admits knowing that the $0 price was not meant
by HP, and therefore was a mistake. So it won't matter what a
reasonable person would have thought.
Consider the following: Instead of the situation at hand, what if the
situation is a contract for building a 2 story building, in which the first
floor is red brick, and the top floor is higher quality white brick.
Bids are tendered, and the lowest is accepted, without noticing that the
unit prices for both types of brick were the same. The building commences,
and the bottom floor is bricked, and only when the white brick is ordered
by the contractor, weeks later, the mistake is noticed. Now, the increased
cost would make the bid the most expensive, and least likely to have been
picked in the first place.
I put forth that in the contruction world, a reasonable person would know
that white brick is more expensive than red brick.
To me, this is the same case, except in mine, I can return the bag and be
relatively even. In the hypothetical, the work cannot be undone, and
someone is going to suffer a loss. Is it not the burden of the contractor
who tendered the erroneous bid to come through on the price quoted, even
though it was his mistake?
Michael
 
 
"The King of Trolls"
11/25/2004 4:16:08 PM


Why isn't it the burden of the contractor to come through on an erroneous
bid?


"Michael Kipper" <mkipper@rogers.com> wrote in message
news:Xns95AC5B9D3C7EBmkipperrogerscom@24.66.94.159...

"McGyver" <Greyprof@msn.com> wrote in news:30k168F31jd5rU1@uni-berlin.de:
Consider the following: Instead of the situation at hand, what if the
situation is a contract for building a 2 story building, in which the
first
floor is red brick, and the top floor is higher quality white brick.
Bids are tendered, and the lowest is accepted, without noticing that the
unit prices for both types of brick were the same. The building commences,
and the bottom floor is bricked, and only when the white brick is ordered
by the contractor, weeks later, the mistake is noticed. Now, the increased
cost would make the bid the most expensive, and least likely to have been
picked in the first place.
I put forth that in the contruction world, a reasonable person would know
that white brick is more expensive than red brick.
To me, this is the same case, except in mine, I can return the bag and be
relatively even. In the hypothetical, the work cannot be undone, and
someone is going to suffer a loss. Is it not the burden of the contractor
who tendered the erroneous bid to come through on the price quoted, even
though it was his mistake?
Michael
 
 
"McGyver"
11/25/2004 7:37:18 AM




"Michael Kipper" <mkipper@rogers.com> wrote in message
news:Xns95AC5B9D3C7EBmkipperrogerscom@24.66.94.159...

"McGyver" <Greyprof@msn.com> wrote in
news:30k168F31jd5rU1@uni-berlin.de:
Consider the following: Instead of the situation at hand, what
if the
situation is a contract for building a 2 story building, in
which the first
floor is red brick, and the top floor is higher quality white
brick.
Bids are tendered, and the lowest is accepted, without
noticing that the
unit prices for both types of brick were the same. The building
commences,
and the bottom floor is bricked, and only when the white brick
is ordered
by the contractor, weeks later, the mistake is noticed. Now, the
increased
cost would make the bid the most expensive, and least likely to
have been
picked in the first place.
I put forth that in the contruction world, a reasonable person
would know
that white brick is more expensive than red brick.
That assumption is probably not valid. Buyers of buildings are
not in the construction business. They are people who need a
building. Maybe the customer is a doctor, lawyer, printer,
insurance broker or a charity. There should be no assumption that
they know anything about the cost of materials. Also, the overall
magnitude of the error may not be enough to put the buyer on
notice. If the difference in cost of bricks is $20,000 and the
building contract is for $300,000, then there should be no implied
notice of the error.
To me, this is the same case, except in mine, I can return the
bag and be
relatively even. In the hypothetical, the work cannot be undone,
and
someone is going to suffer a loss. Is it not the burden of the
contractor
who tendered the erroneous bid to come through on the price
quoted, even
though it was his mistake?
But carrying your hypothetical forward, here's what happens. If
the mistake was not so apparent that the buyer should have been on
notice of it, there is no rescission available and the builder is
stuck with the mistake and must take the loss. If the mistake was
so obvious that the buyer should have been put on notice of it,
then an action for rescission will succeed. That means the
contract is undone. After that, (in the same lawsuit) the builder
is granted an order of quantum meruit, which means that the
builder is entitled to the value of the benefit conferred on the
the customer by the partially constructed building, even if there
is no contract.
McGyver
 
 
"David W."
11/26/2004 8:06:46 AM


"McGyver" <Greyprof@msn.com> wrote in news:30mf3lF30subvU1@uni-berlin.de:
But carrying your hypothetical forward, here's what happens. If
the mistake was not so apparent that the buyer should have been on
notice of it, there is no rescission available and the builder is
stuck with the mistake and must take the loss. If the mistake was
so obvious that the buyer should have been put on notice of it,
then an action for rescission will succeed. That means the
contract is undone. After that, (in the same lawsuit) the builder
is granted an order of quantum meruit, which means that the
builder is entitled to the value of the benefit conferred on the
the customer by the partially constructed building, even if there
is no contract.
McGyver
Does the customer then have the ability to cover losses due to the
contractor's error? Delays in the completion of the building, for example,
or perhaps they can't find another contractor who's willing to take on the
liability of finishing a building someone else started, second contract is
much more expensive, etc.
 
 
"McGyver"
11/26/2004 7:26:27 AM


It usually is the burden of the contractor to perform the contract
regardless of the bidding mistake. There is an exception. If the
other party knew about the mistake, or if the error was so gross
that the other party should have noticed, then it's not fair to
send a contractor to bankruptcy because of a typo. In that case
the contract can be rescinded.
McGyver


"The King of Trolls" <nospam@nospam.com> wrote in message
news:cznpd.5695112$6p.918456@news.easynews.com...

Why isn't it the burden of the contractor to come through on an
erroneous
bid?


"Michael Kipper" <mkipper@rogers.com> wrote in message
news:Xns95AC5B9D3C7EBmkipperrogerscom@24.66.94.159...

 
 
"McGyver"
11/26/2004 7:29:12 AM




"David W." <usenet@walc.com.pluto> wrote in message
news:Xns95AD531F9671Eusenetwalccom@216.196.97.136...

"McGyver" <Greyprof@msn.com> wrote in
news:30mf3lF30subvU1@uni-berlin.de:
Does the customer then have the ability to cover losses due to
the
contractor's error? Delays in the completion of the building,
for example,
or perhaps they can't find another contractor who's willing to
take on the
liability of finishing a building someone else started, second
contract is
much more expensive, etc.
Sure. That sort of thing is accounted for in the calculation of
the "value" of the benefit conferred.
McGyver
 
 
Paul Robinson
12/15/2004 10:06:53 AM


Michael Kipper wrote:
Hello,
I recently went online to purchase a Hewlett-Packard Pavilion laptop from
their online store at www.hpshopping.ca
After selecting my laptop, and a carrying case, I proceeded through the
checkout process and placed my order. What happened, however, was that the
laptop showed up on the final bill with a price of $0.00. The total price
reflected only the price of the bag, not the laptop, even though both were
listed on the items list.
------------------------------------------------------------
I received the email, stating that my order had been accepted. However,
HP only shipped me the bag, and not the laptop.
My question is:
Do I have a legal basis for demanding the laptop for $0.00 as agreed upon
by myself and HP when I made the purchase? Do we have a purchase contract?
Why do you think HP should ship you a computer worth hundreds of dollars
for free?
It can be argued that notwithstanding any "contract" there was no
consideration granted to the seller. A sale with a price of $0.00 is
not a sale, it's a gift.
If I offer to sell you my computer for $0.00 it is a promise, not a
contract as there has been no consideration made for the sale.
 
 
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