Deal or No-Deal: What Happens in Contract Dispute

Introduction: When that “wrong Amazon item” shows up and the contract turns real

You’ve probably previously ordered an item online before, if that is the case then chances are you’ve used Amazon at some point for this service. Usually there are no issues with the delivery and your item arrives fine, however at times things may not work out perfectly, the item may turn up defective or be the entirely wrong item.

For this article we will use the following example of a laptop, imagine you order a brand new laptop, the listing says it is the latest model, to be delivered within 5 business days. You enter into a contract: you pay, and the retailer promises to deliver the correct laptop in that timescale. But when the parcel arrives, it is an older, slower model, and when you follow up on this they reply “sorry, we don’t stock the one you ordered”, and that they will provide a refund for you … maybe.

This scenario is an everyday e-commerce problem, and it illustrates exactly what can happen when a contract is breached. I'm using the example of a laptop as it is a valuable commodity and therefore easier to understand the concept of a contract, but this can be applied for any product purchased such as food, clothing etc.

What is a Breach of Contract?

First of all, let's give a simple definition of a contract. It can be easily understood as a legally binding agreement between two or more parties which creates enforceable obligations. When one party fails to fulfill their obligations, that is a breach of contract [1]. 

The breach can be of different types depending on how badly the terms are broken [2]:

• Minor

• Material (significant)

• Repudiatory (so serious it ends the contract)

Here is the same explanation in the format of a flowchart for better visual understanding

In our scenario you ordered a certain model of laptop yet received a different model, the retailer has failed to perform what was promised, and so there is a breach of contract.

Walking Through the Scenario:

Let’s go through and unpack the “wrong laptop” situation:

• Formation of contract - You (as the buyer) add the laptop to your basket and confirm the purchase by paying the advertised price. The retailer (as the seller) has the laptop model listed stating it will be delivered in 5 business days. The terms of the contract are clear, model specification + delivery promise. 

• Performance/obligation expectations - You expect the seller to deliver the correct model in the specified time. The delivery arrives, but it is not the model that you had seen advertised and purchased. You follow up and are informed that the model you had ordered isn’t actually in stock.

• Breach arises - The seller has not delivered what was promised, and therefore a key term of the contract is not upheld from their part.

• Effect on you - You are less well off, even though you received a laptop it is not the model that you had ordered, it has worse performance, it is clunkier, more cumbersome, you may still need the correct one, you have suffered loss of benefit you expected. 

• Your response - as the “innocent party” you could demand the right laptop, return the wrong one, claim a refund, seek compensation for your extra cost or inconvenience. 

What Remedies are Available?

Damages - usually in the form of money and by far the most common form of remedy. The idea is that the innocent party should be compensated so you are in the position you would have been in if the contract had been fulfilled [3]. In our scenario you might ask for the extra cost you incurred by having to buy the correct laptop elsewhere, or alternatively the difference in the value between the model that you received and the model you initially ordered and contracted for. 

Key points about damages: You must show that you have suffered a loss (causation) and that you have taken reasonable steps to mitigate your loss. For example, if you immediately bought the correct model rather than waiting, that is you mitigating your loss, however if you didn’t do so and instead sat around doing nothing and during this time the price jumped, you may lose some claim [4]. 

Specific performance/Equitable Remedies - if money alone can’t fix it, for instance if the contract is for a unique item, a court may order a specific performance which forces the defaulting party to perform the contract [5]. In our scenario this is less likely as laptop models are replaceable. 

Termination/Rescission of the Contract - if the breach is so serious (repudiatory) that it goes to the heart of the contract, you may treat the contract as ended, and ask for a refund [6]. This may be applicable in our scenario if the seller confirms that they cannot deliver the model that you purchased, and so you may treat the contract as terminated and ask for your payment back. 

Other remedies available:

• Liquidated damages - a pre-agreed sum in the contract for breach [7]

• Injunctions - less common in simple goods contracts but may be used in complex services or industrial contexts [8]

• Nominal damages - where a breach occurred but you suffered little to no actual loss [9]

Why this Matters for Law Students:

Understanding these concepts would help with general commercial awareness. Knowing how breach and remedies work helps you understand commercial contracts, risk, negotiation strategies. You’ll be better placed to spot whether a contractual term is broken, what rights you or your employer may have and whether legal action is viable or costly. Understanding the importance of gathering evidence of the contract and its term and acting promptly to mitigate damages in the face of breaches. 

Final Thoughts:

Initially contract disputes may have sounded dry and boring, but in reality they happen all the time. In restaurants or cafes if you get the wrong order, that can constitute a contractual breach, yet we just view it as a mistake with a simple fix. The wrong laptop delivered online is a perfect gateway example into understanding the serious legal world of contract law. If you grasp what a breach is, what remedies are available, and how to respond, you’ll be much better equipped, not just for your law modules, but for wider commercial awareness also.