My agency has solicited
and received an airline e-mail containing an attractive
group-travel fare quote, along with the group payment and
cancellation terms.
We have accepted those terms by return e-mail. Do we now
have a valid contract? If so, can the airline back out by saying
that it made a mistake in quoting too low a fare?
A: Your agency has a valid contract, as all of
the elements of a contract are present: the airline's offer, your
acceptance and both parties' agreement on all the material
terms.
It would not matter whether the exchanges were all by telephone,
as oral contracts for airline services are, in theory, just as
binding as written contracts. They are just harder to prove. If the
other party lies, you could not prove what was really said.
Here, however, we have an exchange of e-mails, which are binding
on both parties even if they lack contractual formalities or
signatures. You might say that e-mail contracts are like oral
contracts, only easier to prove.
The law does not allow one party to get out of its contract
merely for quoting too low a price by mistake, unless the other
party knew that the quoting party could not possibly have meant so
low a price.
Thus, a quote of $200 per person as a transatlantic group rate
would not fall within the latter category, although a price of $2
per person certainly would.
If the price quoted was well over $200, there is no question
that you have a valid and enforceable contract. If you cannot get
the airline to honor its deal by yourself, you should have your
lawyer write to the airline's legal department and insist the
contract be honored.
If the airline refuses, then you probably have a good legal
remedy. First, contract with another airline at the lowest rate
available.
Second, sue the first airline for the difference in the total
prices. If you don't charge the group more, you will not need to
involve the group in the case.
The risk of such a suit is the airline could decide to pull your
plate if you proceeded with the lawsuit.
Therefore, make sure that the airline that you are going to sue
is not vital to your business.
Mark Pestronk is a Fairfax, Va.-based attorney specializing
in travel law. He answers your questions in the TravelWeekly.com Legal Ease forum.
To contact Mark directly, e-mail him at [email protected]