Hi Ozbargain
I recently purchased a Bose 535 sound system from a major retailer. The price I paid was $19XX. Same system elsewhere is well above $3000. Normal retail price is between $4000 and $4700.
Because of the bulky size, I was not able to collect on the day but when I went back they couldn't find the system I purchased. Presumably, it was re-sold by mistake. Furthermore, they were unable to provide a replacement as a remedy, because this system was on clearance (discontinued) and was out of stock.
Because I bought it at such a bargain price, their failure to deliver the system means I now have to spend twice the money I paid at other shops for the same system.
The shop admitted what they did but was only willing to offer a $300 gift card plus full refund. I am dissatisfied with this offer and was wondering if I can seek compensation for the price difference between the price I paid and the current market price.
My lawyer friend said yes. He proposed the following causes of actions:-
Breach of contract: Essentially, a contract was created when the shop took my payment. They breached the contract when they fail to deliver the item I ordered. Accordingly, I am entitled to compensation for the loss I suffered by them breaching the contract.
Bailment: a bailment occurs when a bailee voluntarily receives possession but not ownership of goods from a bailor who retains the right to receive the goods back when the bailment comes to an end.
In this case, before I purchased the system, I had given a call and a sound system was reserved under my name. I had sighted the system assigned to me with my name on a paper attaching to the box. When the payment of purchase price was made, the ownership of that particular system was transferred. Despite the shop retained possession of the system, it was merely holding same under bailment. The rights of the good belong to me. As they had no legal right to deal with my system without my consent, I can seek either a replacement of the item or monetary compensation for equal value.
I do note this is different to common situation where retailers cancel their orders due to price error or wrongfully taking payments when items are out of stock.
Do you guys have any better suggestion?
Is the value of the goods the purchase price ($1,9XX) or the current market value (sale price at other retail competitors)?
Thanks for all the advice. I know what to do now. Closed…
It was a discounted item. You would be entitled to your money back. Any compensation you receive would be up to the retailers discretion. The contract for sale was for that item, if they are unable to provide that item then the contract is void and you get your money back. Unless in said contract they specified that you would receive a like for like system in the event the item is lost/broken. And because you never received the goods, the transaction is not complete so you can't lean on any replacement Ts & Cs. Even in the case where you say you are entitled to equal value, the value of the item is what you paid for it, not what you claim for it to be worth …. which is exactly the same as getting your money back but you are now tied down to spending it in that store. Take your money back and learn for next time, if its the last one, take it there and then. Most likely a store member seen how cheap it was and bought it from under your nose for themselves.