Please I need help finding an answer to a question! I have searched the UCC and the FTC sites and cannot locate the information.
A salesman for company A intentionally misquotes company B a price for a product which is $600. The price quoted is not authorized by company A and is very low. Company B accepts the quote and pays for the product. Is company A bound to honor the price?
I really appreciate any direction someone can provide me on the above question!
Answer
As a Franchise Attorney I can say you're not going to find the answer to this question on a website. The answer depends on a number of factors. You say Company B paid for the product, but did not give further details. Was payment accepted by Company A? If so, there has been offer, acceptance and consideration - the elements of a binding contract. Company A could try to void the contract on the basis of a defense like mistake, especially if the price was so low that Company B knew or should have known about the pricing error. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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