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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
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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
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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
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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.
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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
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"McGyver" <Greyprof@msn.com> wrote in message news:<30fdviF2v4t4sU1@uni-berlin.de>...
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
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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 $0.00 as agreed upon by myself and HP when I made the purchase? Do we have a purchase contract? A related issue: Suppose this transaction had played out a little differently, and HP actually SHIPPED the laptop (or suppose it happened at a brick-and-mortar store, and I walked out with it). Does HP have the right to charge my credit card again for the laptop? Without notifying me in advance? If I refuse to pay, do they have a right to demand I ship back the laptop? Gordon L. Burditt
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gordonb.go6fw@burditt.org (Gordon Burditt) wrote in news:co0536$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?
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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
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 $0.00 as agreed upon by myself and HP when I made the purchase? Do we have a purchase contract? Thanks, Michael Thunder Bay, Ontario, Canada
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gordonb.go6fw@burditt.org (Gordon Burditt) wrote in message news:<co0536$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.
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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
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"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?
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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
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"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
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Why isn't it the burden of the contractor to come through on an erroneous bid?
"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
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"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
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"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.
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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
Why isn't it the burden of the contractor to come through on an
erroneous
bid?
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"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
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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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