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Donovan v. RRL Corp. II

26 Cal. 4th 261, 109 Cal. Rptr. 807, 27 P.3d 702 (2001)

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Donovan v. RRL Corp. II

California Supreme Court

26 Cal. 4th 261, 109 Cal. Rptr. 807, 27 P.3d 702 (2001)

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Facts

Donovan (plaintiff) sued RRL Corporation (RRL) (defendant) for breach of contract. RRL advertised the sale of a used car in a local newspaper. 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 appeal 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 appeal 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

Issue

Holding and Reasoning (George, C.J.)

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