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Offer of smartphones at a heavily reduced price and its legal classification
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In its judgment of 16 July 2024 (Case No. 9 U 11/23), the Higher Regional Court (OLG) of Frankfurt am Main addressed the consequences of an online shop in which high-end smartphones were mistakenly offered for EUR 92 instead of the usual market price of EUR 1,099 per unit. The decision provides insight into the standards for assuming a declaration of intent when selling under obviously erroneous conditions and the legal implications of such pricing.
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Facts of the case: Manifestly incorrect price indication
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At the core was the question of whether displaying a product offer at an unusually low price in an online shop constitutes a binding declaration to conclude a purchase contract. In this context, a customer ordered several devices at the price shown on the website, which was far below the usual market value.
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Key considerations for interpreting the declaration of intent
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Legal assessment of the offer situation
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The Higher Regional Court examined whether the offer in the webshop was to be understood as a binding declaration of intent within the meaning of the German Civil Code (BGB). In the court’s view, from the perspective of an objective recipient (§ 157 BGB), in the case of such a price deviation one generally cannot assume an intention to be legally bound. Such an exceptional case exists in particular where it is obvious to an average buyer that this is an input error.
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Distinction from a mere invitatio ad offerendum
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The court emphasized that, under the circumstances, the price display in the webshop constituted merely an invitation to submit a contractual offer (invitatio ad offerendum) and not a binding offer. This view is supported by the glaring difference between the offered price and the market price. Only upon receipt of the order did the customer submit an offer, which, however, was not accepted by the shop.
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Relevance for practice and ongoing developments
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Effects on electronic commerce
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The decision underscores the importance of careful pricing and monitoring of online offers in the sale of goods. For users of electronic sales systems, the judgment provides guidance on the question of the binding effect of incorrect price indications. Since the proceedings concern a specific individual constellation, the respective circumstances must always be assessed in their entirety.
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Note on ongoing proceedings and sources
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It should be noted that the judgment of the OLG Frankfurt am Main (Case No. 9 U 11/23) was reported on 16/07/2024. Further details of the reasons for the decision can be found at urteile.news. To the extent that further legal remedies are lodged, the presumption of innocence applies until the proceedings are concluded with final legal effect.
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Need for discussion regarding IT-law issues
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Against the background of technology-based sales models, complex issues repeatedly arise regarding the validity of declarations of intent and the legally secure design of online offers. Should further questions arise in this context regarding pricing or the performance of the contract in e-commerce, an individual legal analysis is recommended. A further overview and the possibility of contractual-law support is provided by MTR Legal Rechtsanwälte on the page for Legal advice in IT law.
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