Return of a ring against reimbursement of the purchase price

Facts

Werner Nussberger, a jeweler and goldsmith in Baden, displayed a ladies' ring with a blue opal and 25 diamonds in a display case near his shop in the fall of 1974. Due to an error by his employee Silvia Meier, the price of the ring was marked as CHF 1,380 instead of the actual price of CHF 13,800. On October 15, 1974, [K.] purchased the ring at the displayed price of CHF 1,380. The next day, Nussberger discovered the error and demanded that the buyer [K.] return the ring in exchange for reimbursement of the purchase price. As no agreement was reached, Nussberger filed a lawsuit with the District Court of Baden for the return of the ring against payment of the purchase price of CHF 1,380. Potential claims for damages were also asserted.

Considerations

The Federal Supreme Court concluded that the contract between Nussberger and [K.] had been concluded, as the display of the ring with a price tag was considered an offer, and K.'s acceptance had been accepted. However, Nussberger can invoke a material error of declaration pursuant to Art. 24 para. 1 no. 3 CO, as he had intended to sell the ring at a significantly higher price.…