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Rules of contract ordinary offline transactions

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Question:

The rules of contract apply online as they would in ordinary offline transactions. Discuss this statement in relation to the following facts. Include in your answer, whether Harry should be entitled to enforce the contract or otherwise. Write a 3000 words report on this.

Facts:

Harry was surfing the web at Guys and Potters internet café late at night looking to purchase a 3D printer. Harry came across a website of a computer accessories distributor, Amazing.com advertising a 3D printer model 007 for $69. Harry having been on the hunt for 3D printers, knew that the price did not sound right. He checked the price of the same printer on other websites and found that it was actually selling for at least $699 each.

Amazing.com limited the purchase to 3 units of the printer, per customer only.

Harry quickly contacted as many of his friends about the printer and told them to make as many purchases as they could with their credit cards.

To purchase the printer, a buyer had to have a valid credit card. There was also a link to Amazing.com's terms and conditions where purchasers were required to click an "Accept" button. After each purchase, a message is sent to the purchaser stating as follows:

"Thank you for your purchase. Your order is subject to the terms and conditions of our service and will be accepted upon confirmation of the availability of the product you ordered. The delivery dates of your item will vary according to the level of demand for the model purchased.

Amazing.com thanks you for your order."

Amazing.com discovered the error the next day and sent out cancellations of all the orders made including those made by Harry and his friends. Amazing.com stated that a mistake was made in the advertisement and that full refunds will be made for the orders cancelled.

By the time the cancellation was received, Harry and his friends had already purchased 60 units and had been charged on their credit cards.

Harry and his friends sued Amazing.com demanding that the company fulfilled the orders paid for and rejected the refund.

[Note: Students are also provided the the case of Chwee Kin Keong and Others v Digilandmall.com Pte. Ltd. [2004] SGHC 71 for the purpose of this assignment.

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Solution Preview

https://www.wilmerhale.com/pages/publicationsandNewsDetail.aspx?NewsPubId=91329
http://smallbusiness.chron.com/company-advertising-price-wrong-responsible-mistake-73117.html
http://www.legalmatch.com/law-library/article/unilateral-mistakes-in-a-contract.html

Include in your answer, whether Harry should be entitled to enforce the contract or otherwise. Write a 3000 words report on this.
$69. Harry having been on the hunt for 3D printers, knew that the price did not sound right. He checked the price of the same printer on other websites and found that it was actually selling for at least $699 each. Amazing.com limited the purchase to 3 units of the printer, per customer only. Harry quickly contacted as many of his friends about the printer and told them to make as many purchases as they could with their credit cards. To purchase the printer, a buyer had to have a valid credit card. There was also a link to Amazing.com's terms and conditions where purchasers were required to click an "Accept" button. After each purchase, a message is sent to the purchaser stating as follows:"Thank you for your purchase. Your order is subject to the terms and conditions of our service and will be accepted upon confirmation of the availability of the product you ordered. The delivery dates of your item will vary according to the level of demand for the model purchased.Amazing.com thanks you for your order." Amazing.com discovered the error the next day and sent out cancellations of all the orders made including those made by Harry and his friends. Amazing.com stated that a mistake was made in the advertisement and that full refunds will be made for the orders cancelled.

First and foremost, it's imperative for you to understand that different countries have different legal systems, legal interpretations of law, and ascribe to different versions of what is considered "law" such as common law from Great Britain, which would differ from the type of law that is practiced in France. Nevertheless, in accordance to mistakes that occur during advertising wherein a company has erroneously advertised a price that is unconscionable and damaging to their ability to remain financially solvent, such as advertising a printer for $66 instead of its actual price of $699, courts the world over have ruled that the seller is not obligated to honor such a contract regardless if the advertisement was done in print, online, or any other mode of advertisement as long as the seller can reasonably prove that the erroneous advertisement was a mistake as opposed to intentional deception.

Mistakes often occur in contracts as a result of errors that emanate from how words ...

Solution Summary

The rules of contract ordinary offline transactions are provided.

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