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Your web-site is an invitation to contract

From the legal perspective your web site is considered an invitation to make a contract.

When a customer fills her shopping cart, checks out, completes the form and hits the click-to-purchase button, she is sending you a contract.

When you acknowledge the order, you have confirmed the contract.

When you have delivered the product, you have concluded the contract.

What does this mean?

Most importantly, it means that you should put all the terms of sale on your web site in such a way that the customer must see them before she clicks-to-purchase. Note, these do not all need to be in one long block of text prior to the click-to-purchase button (although key terms probably should be). Some general terms - for example, shipping info - may be made by the customer during the check out process and so do not need to be repeated.

Your terms should include:

Jurisdiction (ie. whose laws prevail in the event of a dispute; but in transactions in which the customer and vendor are both in the EU, jurisdiction is normally in the customer's country).
Details of after-sales services, if any.
When and how payment will be taken (ie. will you take payment at the time of order or at the time of shipping?).
Method of delivery.
How to return the product, deadline for returning the product and any restrictions regarding returning the product.
Guarantees - if any.
Means of delivery and approximate delivery time.
What should be done if the product is out of stock.
What the customer should do if there is a problem and be sure to include various means of contacting you, including telephone and e-mail addresses.
Contact information, including the legal address of your business.
What the product comprises (for example, if you are selling a camera, you need to clarify what is included with the camera, such as lens, case, batteries, filters, etc).
Anything else relevant to the purchase, delivery and use of the product. After all, if the customer is clear on all the terms prior to the purchase, misunderstandings which turn into disputes are less likely to occur.

What if there is incorrect information on my web site?

Imagine your web site advertises a product that should cost Euro 999, but accidentally lists the price as Euro 9.99. If a customer orders the product at Euro 9.99 based on the price given on your web site, are you legally obligated to deliver at that price?

Probably not, unless you confirm the order at the wrong price, and thus confirm the contract. If, however, upon receiving the order, you notice the mistake and inform the customer of the error, you probably have no legal obligation to deliver the product at the wrong price. However, it should be worth noting that you will probably anger the customer and as a result lose the customer. Hence it is worth considering which would be more costly to your business - losing the price difference between the incorrect and correct price; or losing the customer.

Nevertheless, it is worth having a suitable disclaimer on your web site indicating that prices may change and that you are not legally obligated to sell at the stated price.

Good luck.

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