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A communicated price is not always final

A communicated price is not always fixed. If you mislead the buyer (as with fraudulent software), the court may lower the price or partially dissolve the purchase. Conversely, in the event of an obvious mistake — a price...

Published on August 3, 2021 by MKBjuristen.nl
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A communicated price is not always fixed. If you mislead the buyer (as with fraudulent software), the court may lower the price or partially dissolve the purchase. Conversely, in the event of an obvious mistake—a price that is clearly too low—you are not obliged to sell at that price. Furthermore, you can regulate a price change subject to conditions in your general terms and conditions.

The price is a core agreement: you may not hide an agreed price in the fine print, and the court does not revise a price lightly. Yet sometimes it is possible, as a case involving fraudulent software demonstrates.

Price reduction for fraudulent software

The Car Claim Foundation advocated for owners of cars (Audi, SEAT, Škoda, Volkswagen) with a diesel engine equipped with cheating software. During tests, this software made it appear that emission standards were being met, while in reality the engine emitted much more — prohibited under European emission regulations, but nevertheless used between 2008 and 2015.

The Amsterdam District Court (ECLI:NL:RBAMS:2021:3617) ruled that the manufacturers acted unlawfully and intentionally misled not only the regulator but also the buyers. As a result, buyers paid too much: they were willing to pay the price, but for a car that met the standards. The judge set the price reduction at 3,000 euros for a new car and 1,500 euros for a second-hand car — a partial dissolution (price reduction), not a full one, because the car was drivable. This is based on Article 7:22 of the Dutch Civil Code: if the delivered item does not conform to the agreement, the consumer may dissolve the contract or reduce the price proportionally.

An incorrect price and the apparent mistake

Conversely: if a price that is too low is displayed by mistake (checkout higher than the shelf, or an error in the webshop), the consumer may in principle assume the reasonable price shown — unless it is clearly a mistake. In the event of such an obvious error, the consumer cannot force the seller to deliver at that price.

You assess whether there is a manifest error on the basis of the judgment of the Court of Appeal of 's-Hertogenbosch (ECLI:NL:GHSHE:2008:BC2420): assuming an average informed consumer who has researched the brand, features, comparable prices, and offers. In that case, LCD televisions were offered for 99 euros without a promotional stunt, whereas comparable devices cost between 700 and 1,300 euros. The consumer should have known that this was a mistake, so the seller was not required to deliver for 99 euros.

Price change via the general terms and conditions

The price is not entirely inflexible. You can include in your general terms and conditions that you may adjust the price, subject to rules: a price change within three months of concluding the agreement is only permitted if this is stated in the terms and conditions and the consumer then has the right to terminate the contract.

Frequently Asked Questions

Should I sell at the wrong, too low price?

Not if it concerns an obvious mistake that an average informed consumer should have noticed. However, in the case of a reasonable price that is not clearly incorrect, the consumer can make a claim.

Can a judge reduce the price retroactively?

Yes, for example if the product does not conform to the agreement or the buyer has been misled. The judge can then reduce the price or (partially) dissolve the purchase.

Am I allowed to change my prices in the meantime?

Subject to conditions, yes, if your general terms and conditions stipulate this. In the event of a change within three months of concluding the agreement, a consumer must be able to terminate the agreement.

Make good agreements about prices

The legal experts at MKB Juristen legally incorporate price and price change agreements into your terms and conditions. View our expertise in contract law or schedule an intake meeting .

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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