Q: If a company makes an agreement or offer to you for a specific product in an email, do they have to honor what it says?

A: If a company makes an agreement or offer to you in an email for a specific product, they may be obligated to honor what it says, especially if the terms are clear and specific. In California, contracts can be formed through email communications, and if the email contains all essential terms and you accept the offer, it could be considered a binding contract. However, there are exceptions, especially if the company can prove that a mistake was made.

If the company now claims that their employee provided incorrect information, they may argue that the offer was based on a mistake, which could affect their obligation to honor it. In some cases, a mistake—especially a significant one—could be grounds for the company to void the agreement. This depends on whether the mistake was obvious or if you reasonably relied on the offer to your detriment.

It’s important to review the specific language in the email and consider how clear and definite the offer was. You may also want to look at any disclaimers the company might have included in the email or on their website. If you feel that the company is not honoring a valid agreement, you could consider discussing the matter further, potentially seeking legal advice to understand your rights fully.

A: A key factor would be if the employee who sent the email had the authority of the company to make binding decisions. If the employee held an executive title, such as Vice President of Sales, it is more likely than not that they had the authority to bind the company. Assuming the employee did have such authority, if the offer contained a significant mistake that was obvious and you should have reasonably noticed the mistake (e.g. $1 price but typical product price $100) then the company may argue the offer is invalid. However, the company could still be bound by the price offer if you reasonably relied on the offer. You will need to show you acted in good faith.