Foodmart

Foodmart

In the scenario in section1.4 Foodmart has recently developed an online ordering service for home delivery within a 10-mile radius of each Foodmart store. To use the service, Foodmart requires customers to agree to terms and conditions of a contract when first entering an online order. The contract specifies that advertised sales prices do not apply to online purchases, and orders are limited to inventory on hand at the store nearest to the ordering customer. Todd sees a Foodmart newspaper advertisement for a chocolate sauce that is being discontinued at a reduced price. The chocolate sauce is a key ingredient in a special cake recipe which Todd uses in his catering business. Todd attempts to make an online purchase of all the remaining sauce at the advertised price from a store nearest to his shop within the 10 mile radius. The store mistakenly advises him it has sold out of the chocolate sauce, even though it has ten (10) cases in inventory. Todd requests that the Cypress store obtain the chocolate sauce from two other Foodmart stores which are within the 10-mile radius. Foodmart refuses, citing the contract provisions.
Todd is actually right in saying the contract was broken and he should receive damages. Due to the mistake made in inventory, the Foodmart did not give Todd the chocolate sauce that was in stock (10 cases). However the contract specifically states that orders are limited to inventory on hand at the store nearest to the ordering customer. That store only had 10 cases so Todd cannot claim damages for not receiving chocolate sauce from those stores. The advertized price does not make much of a difference in this scenario. If it was lower than the online price that difference should be deducted from damages awarded to Todd.