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Amazon Adjusts Prices After Sales Error

tomphaedrus I am a law student who has completed contracts. (756 comments)

I'm probably posting too late but:
There seem to be a lot of outrage and confident assertions over 'what the law is' in this thread, so I'd like to give my opinion (I am a 2 year law student)...

1. Courts frequently allow the recission in these clerical error type cases because it does not serve recognized contract law social policy to enforce them.
2. In each case where the customer knew of the mistake, black letter law (See Restatement of Contracts, section 153 'When Mistake of One Party Makes a Contract Voidable') indicates a slam dunk case in Amazon's favor. (Often mistake can be inferred from the price stated in the Contract offer, so it is certainly possible a court would decide this even in the few cases where the customer honestly thought he or she was getting free DVDs).
3. Neither of the above makes it correct for Amazon to pursue 'vigilante' measures of collecting (in this case, charging customer's credit cards). Amazon should look to a court to rescind the contract.

more than 7 years ago

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