Is a customer legally forced to pay for the company’s mistake?

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Is a customer legally forced to pay for the company’s mistake?

A company provides a service for Price A. The customer agrees and signs the bill. The company comes back days later and says Price A was a mistake; the customer has to pay Price B. Does the company have a right to force collections?

Asked on January 20, 2016 under Business Law, Virginia

Answers:

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

Answered 5 years ago | Contributor

If the customer did not know and had no reason to know of the mistake in the price, the contract is enforceable against the mistaken (company) party at the original price.  Mistake is a defense to enforcement of the contract.


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