What to do about a cancelled contract?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about a cancelled contract?
I placed an order with a sign company for a sign for our business. The owner of the sign company went from the initial price of $235 to $515. The owner says we owe him for a sign nut we canceled within 48 hours of my verbally saying I thought it was OK. The owner states that the order was placed and then shipped on the same day. We notified him by email that we wanted to cancel due to the fact that his price was almost 3 times the price of what it should have been. I ordered without the consent of my husband who owns the company. I felt very pressured and intimidated. Now he is taking us to small claims court. Do I have any rights? There was nothing signed and I have no paperwork.
Asked on May 29, 2012 under Business Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
An oral contract is enforceable, so the absence of a written contract does not protect you. The fact that you felt "pressured and intimidated" is irrelevant, as long as illegal threats (e.g. violence, blackmail) were not used--the law expects responsible adults to make decisions in their own interest and resist pressure, and does not make high pressure sales tactics and the like illegal. It does not matter if the price was higher than it should have been, since the law does not prevent people from making bad deals or purchases. And if to a reasonable outside person, you would have seemed to have the authority to make this order, the other party may rely on that "apparent authority."
Finally, if they already fulfilled--or at least incurred costs--prior to your cancellation, they could clealy hold you to your agreement; indeed, even if they had not already fulfilled or incurred costs, they could probably hold you to the agreement, since the law does not require sellers to provide a right of cancellation in cases like this.
From what you write, you seem to be obligated for the amount you agreed to.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.