Cancelled order after acceptance due to Misprice

foxipixini · 5 December 2011 at 3:21PM

Hi

My brother recently ordered 2 laptops online and received both an email outlining the order and then another accepting the order.

The next day, he received the following:
'I refer to your order for the HP EliteBook 2560p Notebook PC (LG669EA) which was due in to our Logistics Department on Monday 5 December 2011.
I regret to advise you that this item is no longer available at the price stated on your order, and as such HP has had to cancel the order, or in the case of a multiple order, the unit has been cancelled off and the remainder will ship.
Any monies taken from you will be refunded in full.
I do apologise for disappointment and inconvenience this has caused to you as a valued HP customer.'

Are they allowed to do this even though they had sent an acceptance email?

I checked their T&C's online, which state HP reserves the right to cancel any accepted order prior to delivery, at HP's discretion (whether or not your credit card has already been charged), in case of any material errors in connection with your order, the price or other conditions published in the HP Business Store relevant for your order. However, they fail to clearly identify within their T&Cs when the contract becomes legally binding. Is this not an unfair T&C that contradicts the Sale of Goods Act and Contract Law? I thought that a company could not add a term like that.

Please help.

Many Thanks

vax2002 · 5 December 2011 at 3:22PM

It becomes binding when you take delivery of the goods

texranger · 5 December 2011 at 3:31PM

vax2002 wrote: »

It becomes binding when you take delivery of the goods

wrong the contract is usually formed on dispatch of goods, so until they have physically dispatched the goods to you then no contract has been formed and until this point they can do what they like

bod1467 · 5 December 2011 at 3:50PM

Hmm. From http://h41306.www4.hp.com/info?SID=3083f7b193f63642c4a65e128cccea4c462:1223&page=storepolicies#terms

Order Cancellation

HP reserves the right to cancel any accepted order prior to delivery, at HP's discretion (whether or not your credit card has already been charged), in case of any material errors in connection with your order, the price or other conditions published in the HP Business Store relevant for your order, or if any further verification of your credit conditions or records so warrants. If your credit card has already been charged and your order is cancelled, HP will immediately issue an appropriate credit to your credit card account. You have no right to cancel for convenience but your rights regarding defective products are set out below.

Really? They're saying that their T&Cs supersede the Distance Selling Regulations?

(Sorry. Off topic from the OP but this caught my eye when I was looking for the "when contract is formed" bit).

tomjonesrules · 5 December 2011 at 3:52PM

vax2002 wrote: »

It becomes binding when you take delivery of the goods

texranger wrote: »

wrong the contract is usually formed on dispatch of goods, so until they have physically dispatched the goods to you then no contract has been formed and until this point they can do what they like

I would argue that both of these are wrong as there is no 'usual' situation, and the passing of title comes down to the wording of the terms and conditions. In this case it appears that the contract is formed upon delivery: