Online seller refusing to sell item at advertised price
Stevecollins
Posts: 3 Newbie
My wife ordered a number of items online from a local music store including a used guitar, and associated new items to accompany it as a Christmas gift for my son. The order was placed and the items bought on an interest free credit deal over 9 months with A 10% deposit paid.
The items was purchased on Wednesday evening and an order confirmation email received just after 6pm. Confirmations were also received regarding the credit agreement.
The store has now emailed stating the guitar was priced incorrectly due to a glitch?? the guitar was advertised at £139.99 and they are now asking for £350. I have read their terms and conditions and from what I have read, it appears that a contract is entered into to when the order is confirmed. They have now emailed stating that they are going cancel the full order and return the deposit. Should they not have to honour the price as a contract has been entered into?
I enclose the relevant section of their T&C's.
"3.2. The appearance of Goods on the Website or anywhere else that we sell them is an invitation to you to make an offer to purchase them by placing an Order with us. We have the right to refuse any Order and it will not bind us until we have accepted your Order and issued you with notification in writing that your Order has been accepted ("Order Acceptance")."
They have also stated that section 8 of their T&C's releives them from honouring the contract but I can't find anything that would suggest this.
8.1. You shall pay us the price for the Goods which shall be the price set out on the Order Acceptance or, if no price is set out on the Order Acceptance, the price of the Goods shall be calculated in accordance with the price on the Website or our price list which is in force on the date we accept your Order.
8.2. Save as otherwise agreed between you and us, you shall pay us the price of the Goods at the time when you order them by credit card or debit card in accordance with the payment terms on the Website.
8.3. We shall be entitled to invoice you for all amounts due under the Order on placing the Order and for Goods ordered at our Website or by telephone payment shall be taken at the time the Order is placed.
8.4. If the Delivery Address is outside of mainland UK, we shall be entitled to charge you for our reasonable costs in transport, packaging and insurance (including any value added tax thereon). A quotation for such charges is available from us upon request.
8.5. Except where we have informed you otherwise, the price is inclusive of any applicable value added tax.
8.6. We reserve the right, by giving notice to you at any time before the Goods are delivered, to increase the price to take account of any increase in the cost to us of supplying you the Goods which is due to:
8.6.1. any factor beyond our control (which may include, but is not limited to, changes in our supply costs, exchange rate fluctuations and charges in import duties or levies);
8.6.2. any change in delivery dates or quantities for the Goods which you request; or
8.6.3. any delay caused by your instructions or failure by you to give us adequate information or instructions.
8.7. If on notification of the increase in price you decide not to proceed with the Order then you are entitled to cancel the Order within a reasonable time of such notification, and no later than fourteen (14) days and will be given a full refund of the price, if it has already been paid.
8.8. Where payment is not made on placing the Order you shall make payment to us in respect of all invoices in full by the end of the month following the calendar month in which the invoice is dated in full in pounds sterling (£) or Euros (?) without any deduction.
8.9. If you fail to make any payment due to us by the due date for payment, we may:
8.9.1. cancel the Contract or suspend any further deliveries to you; and/or
8.9.2. charge interest (both before and after any judgement) at the rate of 4% over the base rate from time to time of Barclays Bank PLC on the outstanding balance; and/or
8.9.3. cancel any credit accounts that you have with us.
8.10. All payments payable to us under the Contract shall become due immediately on its termination despite any other provision.
The items was purchased on Wednesday evening and an order confirmation email received just after 6pm. Confirmations were also received regarding the credit agreement.
The store has now emailed stating the guitar was priced incorrectly due to a glitch?? the guitar was advertised at £139.99 and they are now asking for £350. I have read their terms and conditions and from what I have read, it appears that a contract is entered into to when the order is confirmed. They have now emailed stating that they are going cancel the full order and return the deposit. Should they not have to honour the price as a contract has been entered into?
I enclose the relevant section of their T&C's.
"3.2. The appearance of Goods on the Website or anywhere else that we sell them is an invitation to you to make an offer to purchase them by placing an Order with us. We have the right to refuse any Order and it will not bind us until we have accepted your Order and issued you with notification in writing that your Order has been accepted ("Order Acceptance")."
They have also stated that section 8 of their T&C's releives them from honouring the contract but I can't find anything that would suggest this.
8.1. You shall pay us the price for the Goods which shall be the price set out on the Order Acceptance or, if no price is set out on the Order Acceptance, the price of the Goods shall be calculated in accordance with the price on the Website or our price list which is in force on the date we accept your Order.
8.2. Save as otherwise agreed between you and us, you shall pay us the price of the Goods at the time when you order them by credit card or debit card in accordance with the payment terms on the Website.
8.3. We shall be entitled to invoice you for all amounts due under the Order on placing the Order and for Goods ordered at our Website or by telephone payment shall be taken at the time the Order is placed.
8.4. If the Delivery Address is outside of mainland UK, we shall be entitled to charge you for our reasonable costs in transport, packaging and insurance (including any value added tax thereon). A quotation for such charges is available from us upon request.
8.5. Except where we have informed you otherwise, the price is inclusive of any applicable value added tax.
8.6. We reserve the right, by giving notice to you at any time before the Goods are delivered, to increase the price to take account of any increase in the cost to us of supplying you the Goods which is due to:
8.6.1. any factor beyond our control (which may include, but is not limited to, changes in our supply costs, exchange rate fluctuations and charges in import duties or levies);
8.6.2. any change in delivery dates or quantities for the Goods which you request; or
8.6.3. any delay caused by your instructions or failure by you to give us adequate information or instructions.
8.7. If on notification of the increase in price you decide not to proceed with the Order then you are entitled to cancel the Order within a reasonable time of such notification, and no later than fourteen (14) days and will be given a full refund of the price, if it has already been paid.
8.8. Where payment is not made on placing the Order you shall make payment to us in respect of all invoices in full by the end of the month following the calendar month in which the invoice is dated in full in pounds sterling (£) or Euros (?) without any deduction.
8.9. If you fail to make any payment due to us by the due date for payment, we may:
8.9.1. cancel the Contract or suspend any further deliveries to you; and/or
8.9.2. charge interest (both before and after any judgement) at the rate of 4% over the base rate from time to time of Barclays Bank PLC on the outstanding balance; and/or
8.9.3. cancel any credit accounts that you have with us.
8.10. All payments payable to us under the Contract shall become due immediately on its termination despite any other provision.
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Comments
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If it's an obvious mistake, such as this one, it can be rectified.0
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But if the contract has been made, should they not be required to honour it?0
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I agree with zx81.
Occasionally you hear of companies honouring a lower price of a product that was incorrectly listed (I think this has happened with an Asian Airline a couple of times recently), but usually they are within their rights to correct any mistakes.0 -
As above , obviously an error , cancelled before dispatchEx forum ambassador
Long term forum member0 -
Thank you for your replies but it still doesn't answer the question of this being against the consumer rights act. It clearly states in the sellers T&C's that once the order is confirmed, that it is binding.
Or am I missing something??0 -
Stevecollins wrote: »Thank you for your replies but it still doesn't answer the question of this being against the consumer rights act. It clearly states in the sellers T&C's that once the order is confirmed, that it is binding.
Or am I missing something??Stevecollins wrote: »8.6. We reserve the right, by giving notice to you at any time before the Goods are delivered, to increase the price to take account of any increase in the cost to us of supplying you the Goods which is due to:
8.6.1. any factor beyond our control (which may include, but is not limited to, changes in our supply costs, exchange rate fluctuations and charges in import duties or levies);
8.6.2. any change in delivery dates or quantities for the Goods which you request; or
8.6.3. any delay caused by your instructions or failure by you to give us adequate information or instructions.
8.7. If on notification of the increase in price you decide not to proceed with the Order then you are entitled to cancel the Order within a reasonable time of such notification, and no later than fourteen (14) days and will be given a full refund of the price, if it has already been paid.
8.8. Where payment is not made on placing the Order you shall make payment to us in respect of all invoices in full by the end of the month following the calendar month in which the invoice is dated in full in pounds sterling (£) or Euros (?) without any deduction.
8.9. If you fail to make any payment due to us by the due date for payment, we may:
8.9.1. cancel the Contract or suspend any further deliveries to you; and/or
8.9.2. charge interest (both before and after any judgement) at the rate of 4% over the base rate from time to time of Barclays Bank PLC on the outstanding balance; and/or
8.9.3. cancel any credit accounts that you have with us.
8.10. All payments payable to us under the Contract shall become due immediately on its termination despite any other provision.Stevecollins wrote: »Thank you for your replies but it still doesn't answer the question of this being against the consumer rights act. It clearly states in the sellers T&C's that once the order is confirmed, that it is binding.
Or am I missing something??
Seems like they notified you of the price increase and subsequently cancelled the order in anticipation you would be doing.
You should be able to make them supply the goods (providing they can still get them) although you should expect to pay the higher price.
The consumer rights act allows for mistakes to happen. Business employs people, people make mistakes, business should not be held liable for certain mistakes. Lets say the person in charge of amazon pricing was particularly disgruntled and put everything on their site at a penny, they just wouldnt be expected to honour that price (well providing it gets spotted in time)0 -
It has answered the question, it was a clear and obvious pricing mistake and as such they don't have to honour the contract.Stevecollins wrote: »Thank you for your replies but it still doesn't answer the question of this being against the consumer rights act. It clearly states in the sellers T&C's that once the order is confirmed, that it is binding.
Or am I missing something??0 -
Stevecollins wrote: »Thank you for your replies but it still doesn't answer the question of this being against the consumer rights act. It clearly states in the sellers T&C's that once the order is confirmed, that it is binding.
Or am I missing something??
It IS binding, but as this was clearly a mistake, then they have notified you of the mistake, and have given you the option of paying the correct price or pulling out of the contract.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
Stevecollins wrote: »Thank you for your replies but it still doesn't answer the question of this being against the consumer rights act. It clearly states in the sellers T&C's that once the order is confirmed, that it is binding.
Or am I missing something??
You're missing the overriding principle that isn't binding if it's based on an error in the price which ought to have been sufficiently obvious to you.0 -
In the case if a clear error the contract is "wound back" so that it essentially never existed.
You are now in the same position as before the erroneous contract was made and both parties can now start again.0
This discussion has been closed.
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