When does a business transaction become a contract? At the time money is handed over, or when the item is handed over?
This is what Dolton Browne wants to know after he entered into an arrangement with a garage to purchase a vehicle, only to be told a salesperson had given him the wrong price.
An upset Browne explained that on March 19, he visited Pioneer Motors on Hindsbury Road, St Michael, to look at a van to be used as a route taxi.
“I made a decision between two vehicles. One was for $79 000 and one was for $64 000,” he said, pointing out that the latter did not have seats installed.
“I told the salesman I would settle for the one for $64 000 and that I was going to my credit union for the money.”
Browne said he was given documentation by the salesperson to take to the financial institution which contained the year, model and make of the vehicle, the sales price and a valuation certificate of $64 000.
“On March 21 I went back to Pioneer Motors with the cheque for $64 000. I handed it over to the guy and he proceeded to write me a receipt for the cheque. I then asked him what is the next step. He told me that I could go and get the vehicle insured, then get the seats installed and take the vehicle to MTW [Ministry of Transport and Works] for inspection.”
It was at this point Browne said that the sales clerk went to another office to ask the manager a question about the process to get the vehicle inspected.
“The boss come to me and tell me that the sales clerk made an error with the price, that the van cost $69 000 and not $64 000; and he handed me back my cheque. I told him that is not right; I come here to do a transaction and I was quoted a price and I did everything that I was supposed to do. I told him that the valuation certificate said $64 000, so why the price was now $5 000 more?” he lamented.
Browne said he left the company very angry and disturbed after the manager refused to budge.
“This is not good business practice. They gave me the documentation to take to my financial institution indicating that the price for the vehicle is $64 000. As far as I am concerned I have already purchased the vehicle. The sale became final when I handed the salesman the cheque and he accepted it. I do not like what they did to me and I will sit with my lawyer next week and take his advice on what I can do in this situation.”
When contacted, managing director Lionel Best admitted that an error was made in the price by his staff, but maintained the transaction had not been completed.
“It is completed when I sign over a document saying I have now sold the vehicle to you,” he said. “My staff would have made an error with regards to the pricing and I sought to correct that. I told the gentleman we cannot proceed with the sale of the vehicle because the information was not correct and I handed him back the cheque the same time. I did not take it and deposit it and write him back a cheque. I told him I appreciate his business but there was an error in the transaction.”
When this column made a check with an attorney, he said the company could refuse the cheque from the customer.
“You can’t force them to sell the van at $64 000 because no contract was concluded at that point. What the salesman said in advance is not a promise that is irrevocable; it was a mistake made. If the person had signed an agreement before for the $64 000, then you can enforce it, but anything short of signing a contract is not enforceable,” he explained. (MB)