TAS Car service quote not honoured

[bob105530]

I obtained a quote for a car service in writing and the dealer is now refusing to honour the quote. The quote was for $510 but they are advising it was an error and the service will cost over $1,200. Are they required to honour the quote?

 

[Matthew Karakoulakis]

Hi Bob,

While negotiating price for the purpose of providing services, businesses often provide a price estimate which is commonly called “quote”. Furthermore, It is possible for a quote to become a binding offer. The courts take into account the circumstances of the negotiations between the parties and the intention of the parties to determine whether the quotation is capable of forming a legally binding contract.

For example, the NSW Supreme Court in Megalift v Terminals [2009] NSWSC 324 held that a quote is capable of amounting to a legally binding contract.