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Donovan v. RRL Corp.

Supreme Court of California
27 P.3d 702 (2001)


Facts

Donovan (plaintiff) is suing RRL Corp. (RRL) (defendant) for breach of contract. RRL advertised the sale of a used car in a local newspaper. Unfortunately, the newspaper made a typographical error, listing the sale price well below what RRL intended. Donovan attempted to buy the car based on representations in the advertisement but was rejected by RRL. The municipal court found for RRL, holding that a contract could not be formed because of the mistake in the advertisement. The court of appeals reversed based on a statute of the Vehicle Code making it illegal for a dealership to refuse to sell a car at the advertised price. Further, the court of appeals held that a valid contract had been formed between the parties. The advertisement was an offer and plaintiff accepted the offer when attempting to purchase the car.

Rule of Law

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Issue

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Holding and Reasoning (George, C.J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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