Does an auto dealer have to honor an advertised price?

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Does an auto dealer have to honor an advertised price?

Dealer website advertised new car for $273. Had an on-line chat with a manager who told me it was available but price was wrong. Is there a law stating businesses have to honor price listed even if a mistake was made?

Asked on July 19, 2011 under General Practice, Texas

Answers:

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

Answered 9 years ago | Contributor

In order to have a valid contract, there must be an offer and acceptance.  The price quote standing alone is not sufficient to constitute a valid offer because essential terms are not stated such as time for delivery, payment, etc.

If it had satisfied the requirements of an offer and you knew or should have known of the mistake, you would not be able to take advantage of it.

A fundamental principle of contracts is that if a party knew or should have known of a mistake, the party cannot enforce the contract against the other party.  No one is going to sell a new car for $273.


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