Can a price be raised after a contract is signed?

We signed a contract for our son with special needs to attend a PACE type program in Chicago life skills. The cost was $41,000 per year and we got a $1000 discount because we paid the deposit and committed early. Now they are raising the price by $2000 saying that the cost of housing has gone up.

Can they change the price after we signed the contract to attend?

Asked on April 24, 2017 under Business Law, Illinois

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The price cannot be altered after the contract has been signed.  Price is one of the essential terms of a contract.
You can sue the life skills program for breach of contract.
If the program claims it made a mistake in the price, the contract is still enforceable at the price when you signed the contract ($41,000 per year) because you had no knowledge of the mistake or reason to know of the mistake.  Therefore, the contract is enforceable against the life skills program.


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