Donovan v. RRL Corp.
Supreme Court of California
27 P.3d 702 (2001)
Relevant factsFree
RRL Corp. (defendant), a car dealership, advertised a used car at a price far below the intended amount due to a newspaper typographical error; Donovan (plaintiff) tried to buy the car at the advertised price and was refused. The municipal court found no contract had formed because of the mistake, but the court of appeals reversed, holding a statute barring dealers from refusing to honor advertised prices meant a valid contract existed once Donovan accepted RRL's advertised offer.
IssueFree
Whether a party must fulfill a contract when it made a good-faith mistake regarding a material fact of the agreement and enforcing the contract would cause it a substantial loss.
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