Price binding (2014423899) [2014] ZACGSO 15 (9 May 2014)

Price binding (2014423899) [2014] ZACGSO 15 (9 May 2014)

The Ombud found that the applicant received the same price quotation on three separate occasions and confirmed the price with the supplier before making payment. There was no evidence that the applicant knew or should have known of the supplier's mistake. The applicant did not act unconscionably or attempt to 'snatch at a bargain' in the legal sense. The supplier failed to prove that the applicant was aware of the error or acted improperly. Accordingly, the contract is valid and binding, and the supplier is obliged to deliver the goods at the quoted and paid price.

Citation
[2014] ZACGSO 15
Parties
Applicant: Mr D; Respondent: Supplier
Court
Consumer Goods and Services Ombud
Jurisdiction
South Africa
Judgment Date
9 May 2014
Case Number
2014423899
Procedural Posture
Consumer Complaint / Final Determination by Ombud
Outcome
Complaint upheld. The supplier is bound to deliver the goods at the quoted price.
Judges
Bonita Hughes
Legal Topics
Contractual Mistake, Consumer Protection Act, Binding Offer, Quotation Error
Commercial and Corporate Contractual Mistake Consumer Protection Act Binding Offer Quotation Error

Case Brief

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Parties

Mr D

Applicant

Supplier

Respondent

Procedural Posture

Consumer Complaint / Final Determination by Ombud

Legal Issues

  1. 1 Whether the contract of sale was void due to a mistake in the quoted price.
  2. 2 Whether the complainant knew or ought to have known of the supplier's error in the quotation.
  3. 3 Whether the supplier is legally bound to deliver the goods at the quoted price.

Ratio Decidendi

The Ombud found that the applicant received the same price quotation on three separate occasions and confirmed the price with the supplier before making payment. There was no evidence that the applicant knew or should have known of the supplier's mistake. The applicant did not act unconscionably or attempt to 'snatch at a bargain' in the legal sense. The supplier failed to prove that the applicant was aware of the error or acted improperly. Accordingly, the contract is valid and binding, and the supplier is obliged to deliver the goods at the quoted and paid price.

Court Disposition

Complaint upheld. The supplier is bound to deliver the goods at the quoted price.

Orders

  • The supplier must deliver the goods to the applicant at the price quoted and paid.
  • No additional payment is required from the applicant.