When a Price is Reduced After Your Deposit is Paid

Retailers are desperate to get our custom at the moment and most of the time this works in the consumer's favour, as sales are springing up all over the place and prices seem to be dropping. Instant credit and good deals are the order of the day, and for a small deposit you can secure anything from a new sofa to a complete kitchen or bathroom.

Unfortunately, it can also work against you. If you are one of the unlucky people who agrees to buy an expensive item at a non-sale price, puts down the deposit but then realises that the item has been reduced in the sale, it can leave you spitting feathers. But is there anything you can do legally?

Contract Law

The straightforward answer to the question is that contract law says "No." When you buy goods, under the Sale and Supply of Goods Act there are four principles you need to be aware of. The first principle is called the 'Invitation to Treat'.

Invitation to Treat

An Invitation to Treat is, simply put, the advertised price of the goods, whether on a sticker, in a newspaper or poster or online. It's not part of the contract - which confuses some people who believe that an advertised price is legally binding. Although it may be described as a 'Special Offer' a sale price is not an offer at all, under contract law.

The Offer and Consideration

The next principle is the offer. Let's say you spot a sofa you really like at £1000. You decide to buy it - and then make the seller an 'offer' of that price. The seller accepts this offer (acceptance.) Then, you hand over a deposit of £100 and the seller agrees to supply you with the sofa on an agreed date. This is 'consideration' from both of you, where goods or services change hands for money or 'other consideration.' You now have a completed contract - you have agreed to purchase the sofa and they have agreed to supply it...at the price agreed at the time.

If the Price Goes Down

If you pass the shop a week later, and spot the very same sofa in a sale with 50 per cent off, legally you don't have any right to demand the sofa for less. After all, you agreed to buy it for £1000. You can ask the manager if, given that the sofa hasn't been delivered to you yet and all you've paid is the deposit, he will consider giving you your sofa at the same price it is now being advertised for.

If he is a very nice manager, he or she might say that under the circumstances the shop will knock 50 per cent off of the price for you. The important thing is that they are not obliged to. So be nice! If they stand their ground, you might think you have the upper hand by saying that you'll cancel the contract and look elsewhere. Unfortunately, you don't have the right to do that, and if you force the issue it could put you in breach of contract. At best the retailer can keep your deposit to cover 'out of pocket expenses' and at worst they could attempt to force the performance of the contract - that is make you accept the sofa. In the case of an item that's ready made, it's less likely to happen - but if you are having an item made to your specification, they may well try to either force you to accept the goods or sue you for breach of contract if you refuse.