Car lease - mistaken monthly amount quoted and accepted

[Jasper68]

Hi everyone! I'm a new member but found this site very helpful when looking for VT advice. I'm hoping I can get similar good advice with this query.

I was quoted a figure of £305 per month to lease a car but when I went to sign the finance docs the monthly cost was reduced to £275. Of course, this was good news and when I asked why the cost had reduced I was told it was because the original figure was what was 'live' at the time of the quote but must have reduced in the interim. I happily signed and paid my deposit. Later that day and after I had picked up the new car, I received a call from the leasing company to say that they had made a mistake and had given me the 'business rate' figure. They now want me to sign a new finance agreement at the £305 figure. Am I within my rights to refuse to sign the new agreement? I don't intend being awkward about it, I just want to know if I have any room for manoeuvre.

[des8]

Re: Car lease - mistaken monthly amount quoted and accepted

Hi and welcome to LB.

You don't have to sign the new agreement, but on the other hand the leasing company could probably have the contract voided.
The mistake would be labelled "an error of expression"
Here's an extract pinched from "Practical Law":
An error of expression may occur where the parties have reached a clear oral agreement but the contract so concluded is not accurately transferred into writing. In Krupp v John Menzies Ltd[85] there was a verbal agreement to pay an employee one-twentieth of net annual profits. However, when the written contract was subsequently drawn up this provision was represented as an agreement to pay one-fifth of net profits due to the simple arithmetical mistake of a clerk. The employee sued for payment of her share of the profits as provided by the written contract, but the court upheld the original agreement on evidence from the employer.[86]
At common law the courts are confronted with a stark choice between reducing or upholding the written contract; strictly speaking no amendment is permitted. However, the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 provides a straightforward procedure for the rectification of documents that misrepresent the intention of the parties.[87] Adjustments so made by the court will have retrospective effect. This power is subject to section 9 of the Act, which provides that the court must be satisfied that the interests of innocent third parties are not adversely affected by any proposed rectification.
An error of expression may also occur where the offeror unintentionally misstates the terms of his offer and the offer is accepted before correction can be made. If the offeree realises a mistake has been made—for instance, where the offeror quotes an unrealistically low price for goods—the 'contract' is likely to be deemed void. However, where the offeree accepts in good faith, unaware of the misstatement, the legal position is ambiguous. In general terms, contracts made in such circumstances may be voidable, in particular where the offeree might reasonably have been expected to notice the mistake. In Seaton Brick and Tile Co v Mitchell[88]a contractor offered to do work for a lump sum, which, due to his own miscalculation, was smaller than it should have been. The offer was accepted but when he discovered his mistake the contractor refused to do the work. It was held that the contract was valid and binding. In the circumstances there was nothing to signal the existence of the error to the acceptor and he had justifiably acted on the offer. This case can be usefully contrasted with Wilkie v Hamilton Lodging House Co,[89]where a tradesman undercharged on his bill as a consequence of a miscalculation that was obvious on the face of the document. Given that the other party should have noticed this mistake, it was held that the tradesman was entitled to charge the amount previously agreed. In Steel's Trustees v Bradley Homes (Scotland) Ltd[90] the offeree mistakenly accepted in writing an offer for the payment of a sum with interest accumulating from the wrong date. The court rejected his attempt to reduce the contract on this ground. The offeree's true intentions were unknown to the offeror, and it was not reasonable to infer this knowledge in the circumstances.

If you refuse to sign a new contract they may or may not take legal action
Under the circumstances you may be able to negotiate a reduction from the quoted price in return for not being obstructive and as a gesture of goodwill from them for their mistake.

[Jasper68]

Re: Car lease - mistaken monthly amount quoted and accepted

Thanks des8 for that quick and fulsome response! I suspected that might be the case and good to have that confirmed. I'll see if my disappointment can at least wangle me a set of car mats!

[Kati]

Re: Car lease - mistaken monthly amount quoted and accepted

I'll see if my disappointment can at least wangle me a set of car mats!

and an air freshener :tinysmile_twink_t2:

[Jasper68]

Re: Car lease - mistaken monthly amount quoted and accepted

Don't want to push my luck!