One is hard put to imagine that anyone would purchase such an item, let alone place very substantial orders, without making some very basic enquiries as to pricing. If anything, certain portions of the affidavits raised even more doubts about the plaintiffs credibility. Their [2005] SGCA 2 - eLitigation 80 Upon the conclusion of submissions, I directed counsel to appear before me. Ltd.1 has the makings of a student's classic for several reasons: it presents a textbook example of offer and acceptance; it is set in the context of internet contracting; it involves the use in evidence of email, instantaneous messaging, and short messaging system (SMS); and it . When, however, the cases provoked by these factual situations are analysed, they will be seen to fall, not into three, but only two distinct legal categories. http://www.buy.hp.com.sg/hp/StandardProduct.cfm?prodid=HPC9960A. High Court Suit No 202 of 2003. Others do not. [2004 ] SGHC 71 - Court Judgement - Chwee Kin Keong and Others v From time to time they communicate with each other via the Internet and the short messaging system (sms). The most recent and authoritative pronouncement in this area (. 134 It is not really in issue that contracts can be effectively concluded over the Internet and that programmed computers sending out automated responses can bind the sender. I am not prepared, after full consideration, to assume that the reporters misquoted the facts. The complainants had ordered over 100 printers each at this price. 30th Sep 2021 For example, in the Singapore High Court decision of Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR 594 ("Digilandmall"), affirmed on appeal in Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] 1 SLR 502 without considering this particular issue, V K Rajah JC (as he then was) observed, as follows (at [139]): The jurisdiction asserted in the former case has not developed. Transactions over websites are almost invariably instantaneous and/or interactive. Where either mutual or unilateral mistake is pleaded, the very existence of agreement is denied. 134 It is not really in issue that contracts can be effectively concluded over the Internet and that programmed computers sending out automated responses can bind the sender. "Unilateral Mistake in Contract: Five Degrees of Fusion of Common Law a 133 It is however clear that the law should not take cognisance of bad bargains and misapprehension that do not affect a fundamental or essential aspect of a contractual relationship. This is clearly a mistake as they could not possible be sold for an amount that in a commercial situation. It appears that in Convention transactions, the receipt rule applies unless there is a contrary intention. He claims visiting, 62 Like the second plaintiff, the fifth plaintiff played a pivotal role in the events leading to these proceedings. They were selling a HP laser printer and an employee accidently made a mistake as to the price of the printer on their website.. Cases In other words, he really wanted to ascertain the true price of the laser printer. A prospective purchaser is entitled to rely on the terms of the web advertisement. There was no satisfactory reason for the genesis of this e-mail (see [67] infra). 47 Not content with making his own purchases, he woke up his brother and transacted 330 units on his behalf. Do you have a 2:1 degree or higher? Given its global reach and ever changing technological advancements, Internet usage will pose a myriad of issues for resolution. He is currently self-employed and is intimately involved in the multi-level marketing sales of aromatherapy products under the Bel-Air label. COOKE v OXLEY (1790) 3 T. R. 653. [2005] 1 SLR(R) Chwee Kin Keong v Digilandmall Pte Ltd 521. whether constructive knowledge by a non-mistaken party of the mistake would suffice to vitiate the contract ab initio. Because it was simply a matter of time before the error would inevitably be noticed and the pricing inevitably corrected. The financial consequences could be considerable. After establishing from the web pages that the price quoted for the laser printer was indeed $66, he proceeded to make searches through search engines like Yahoo and visited the website of Hardware.com. The sixth plaintiff told his brother to order some for him, without specifying how many laser printers he wanted or how he intended to pay for the laser printers. Web Communication: A Review Of Chwee Kin Keong And Others v. Digilandmall.com pte ltd by Rokiah Kadir [2009] 8 CLJ xxi. 33 After his first order, the second plaintiff contacted the fourth and fifth plaintiffs informing them about the laser printers. The rigour in limiting this scope is also critical to protect innocent third party rights that may have been acquired directly or indirectly. In these proceedings, it appears that the purchases made by the sixth plaintiff were not accompanied by a corresponding receipt of acceptances, as his e-mail inbox was full. http://www.epinions.com/HP_Color_LaserJet_4600_Series_Printer_Printers. Application of such a rule may however result in contracts being formed outside the jurisdiction if not properly drafted. Chwee KIN Keong AND Others v Digilandmall.COM PTE LTD [2004 ] SGHC 71 by the earlier decision of Chwee Kin Keong v Digilandmall.com [2005] 1 SLR(R) 502, where the Court of Appeal recognised the doctrine of unilateral mistake in equity, departing from the English position in Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd [2003] QB 679; [2002] 3 WLR 1617; [2002] 4 All ER 689. There is however much to be said in favour of rationalising the law of mistake under a single doctrine incorporating the best elements of common law and equity. The rules of offer and acceptance are satisfied and the parties are of one mind. They are all well-educated professionals articulate, entrepreneurial and, quite bluntly, streetwise and savvy individuals. The plaintiffs refute that the error exonerates the defendant; they insist that a concluded contract is sacrosanct and must be honoured. A particular class of case which illustrates unilateral mistake as to the terms intended, known to the other party, is that in which an offer which would be very advantageous to the offeree is snapped up by the offeree. The quintessential approach of the law is to, 106 In the Singapore context, the first port of call when confronted with issues of contract law is inevitably Professor Andrew Phangs treatise on. It would be illogical to have different approaches for different product sales over the Internet. 101 The applicable rules in relation to transactions over the worldwide web appear to be clearer and less controversial. I do not know if this is an error or whether HP will honour this purchase. Ltd. has the makings of a student's classic for several reasons, including: 1. His communications with the fifth plaintiff, a lawyer, on the efficacy of the terms and conditions also lead to the ineluctable conclusion that he harboured anxieties whether this astoundingly good deal would be honoured when the error was discovered. Leave was also given to the plaintiffs to adduce further evidence, if they so desired. Whether the parties have reached agreement on the terms is not determined by evidence of the subjective intention of each party. The businessmen saw a great opportunity and grabbed it placing an order for 1,000 printers. He was amicus curiae to the Court of Appeal of Singapore in the case of Chwee Kin Keong & Ors v Digilandmall.com Pte Ltd, the leading Singapore case on unilateral mistake in the digital environment. While this case needs to be treated with some caution, as it appears to integrate concepts of law and equity, I respectfully agree with the approach in so far as it deals with deemed knowledge. Secondly, widening the scope of mistake, unilateral or otherwise, under the rubric of equitable mistake will, with its malleability, only encourage uncertainty and litigation. He appeared to be consummately familiar with Internet practices and was forced to concede that he thought it was weird and unusual when he saw the number 55 on the relevant webpages in place of the actual product description. A number of them have very close relationships, with some of them even sharing common business interests. Computer glitches can cause transmission failures, garbled information or even change the nature of the information transmitted. This is an area that needs to be rationalised in a coherent and structured manner. [2005] 1 SLR(R) 0502 Chwee Kin Keong and others v Digilandmall.com Pte It is an important subject for the future development of English contract law. As such, I would strongly appeal to you to reconsider your decision. Unilateral mistake in contracts - L'Avocat Law I hope by the time you see this email, the price is still at S$66.00 coz they might change it anytime. Homestead Assets Sdn Bhd v. Contramec . - This is also the position as regards friends: see Coward v. MIB (1963). Established common law principles, in the arena of mistake, ought not be trifled with unless they are so obviously anachronistic and ill-suited to commercial and legal pragmatism. The Canadian and Australian cases have moved along with the eddies of unconscionability. There is no merit at all in this contention. Nor could he satisfactorily explain why he initially made the Internet searches to ensure the offer was genuine. This judgment text has undergone conversion so that it is mobile and web-friendly. I agree that this exception should be kept within a very narrow compass. The pleadings, in such instances, merely formalise what is already before the court. The recipients of this e-mail included the second, fourth, fifth plaintiffs and Tan Cheng Peng, the third plaintiffs girlfriend. Chwee Kin Keong and others v. Digilandmall.com Pte Ltd. [2004 - vLex 131 In a number of cases, including the present, it may not really matter which view is preferred. In its pleaded case, the defendant asserts that the automated e-mail responses it sent out in the early hours of 13January 2003 did not confirm that stock of the laser printers were available and would be delivered. A court will not enforce the plaintiffs purported contracts even if they are not void. Scorpio: 13/01/20 01:43 yeah man whats the original price? The High Court of Australia in Taylor v Johnson purportedly relied on Solle v Butcher, Bell v Lever Brothers, Limited [1932] AC 161, McRae v Commonwealth Disposals Commission (1951) 84CLR 377, all cases of common mistake, to suggest that in unilateral mistake a contracting party cannot assert, by relying on his own mistake, that a contract is void, notwithstanding the issue is fundamental or known to the other side. Chwee Kin Keong vs Digilandmall.com - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. 75 Each of the automated confirmatory e-mail responses carried under Availability of product the notation call to enquire. In evidence he explained his conduct in the following manner: I felt that I had done all that was conceivably within my means to ensure that the Price was not a mistake. The goods are not on offer but are said to be an invitation to treat. 100 There is however another statute that ought to be taken into consideration in determining the appropriate default rule in e-commerce transactions. It is axiomatic that normal contractual principles apply but the contractual permutations will obviously be sometimes more complex and spread over a greater magnitude of transactions. The essence of unilateral mistake is the knowledge or deemed knowledge of a mistake and though fraud may often be present it is not an essential ingredient. After placing his second order, he admitted making further searches on the Internet to fortify my view that the price of the $66 per printer was not a mistake He was also the only plaintiff who placed an order on the Digilandmall website. 21 The first plaintiff must have realised at the outset that he would have to explain with a certain measure of credibility the purport and significance of all his Internet communications between 1.00am and 3.00am on 13January 2003. CLARK, B. No rights can pass to third parties. The quintessential approach of the law is to preserve rather than to undermine contracts. Chwee Kin Keong v Digilandmall.com Pte Ltd. Case Nos: Suit 202/2003/E (for the first instance), CA/30/2004 (for the appeal) in the High Court of Singapore (at first instance), Singapore Court of Appeal. Samuel Teo had used all these notional numerals on the training template. Chwee Kin Keong and Others v Pte Ltd PDF fileChwee Kin Part of the training module included hands-on training with a new template for a Price Mass Upload function. Claiming he was in a light-hearted kind of mood during his ICQ (acronym for I-Seek-You) conversation with Desmond, he insisted that this conversation should be taken neither seriously nor literally. 149 It is clear from the authorities reviewed that such a contract, if entered into by a party with actual or presumed knowledge of an error, is void from the outset. u think this is the 1970s?? Upon completing this sequence, each of the orders placed by the plaintiffs was confirmed by automated responses from the respective websites stating Successful Purchase Confirmation from HP online. I categorically reject their evidence in so far as it attempts to hermetically compartmentalise their knowledge and discussions. In light of these general observations, I now address the law on unilateral mistake. V K Rajah JC: Para continuar leyendo. It appears that it wanted to leave no stone unturned and had therefore mounted a root and branch attack on the plaintiffs claims. Rather they assist in explaining how the common law has incrementally and cautiously allowed and continues to mould exceptions to the application of the objective theory of contracts. Contract Acceptance by Email - LawTeacher.net 327. Civil Procedure Pleadings . Doctrines and Institutions of Responsible Government. Scorpio: 13/01/20 01:46 hahahaha yeah lor .. aiyah why u only buy 3????? A typical but not essential defining characteristic of conduct of this nature is the haste or urgency with which the non-mistaken party seeks to conclude a contract; the haste is induced by a latent anxiety that the mistaken party may learn of the error and as a result correct the error or change its mind about entering into the contract. There is no larger noble principle, such as the sanctity of contracts, to be observed or protected in these proceedings. Comments Published in English: [2004] 2 SLR 594; [2004] SGHC 71. Having said that, this exception must always be prudently invoked and judiciously applied; the exiguous scope of this exception is necessary to give the commercial community confidence that commercial transactions will almost invariably be honoured when all the objective contractual indicia are satisfied. Alternatively, knowledge may be readily inferred from what would be regarded as commonly known or notorious facts in the context of the transaction. There could be different considerations. Lord Griffiths in Ketteman v Hansel Properties Ltd [1987] AC 189 at 220 stated: [T]o allow an amendment before a trial begins is quite different from allowing it at the end of the trial to give an apparently unsuccessful defendant an opportunity to renew the fight on an entirely different defence. This, by an uncanny coincidence, was the same person whom he had intended to consult in the resale of the laser printers a topic that he had discussed with the second plaintiff earlier that morning. The mere fact that they suddenly engage in predatory and atypical behaviour may in itself be telling. Gill & Duffus Landauer Ltd v London Export Corp GmbH [1982] 2 Lloyd's Rep. 627. This assertion is patently untrue. 35 In addition to these conversations, the second plaintiff also accessed the Epinions website and sent a related e-mail to the first plaintiff. He held that the Written Offer was accepted by the . 72 To effect the purchase transactions on the respective websites, the plaintiffs had to navigate through several web pages. I would not however invariably equate the required conduct with fraud. This final mass e-mail only reinforces my view that the first plaintiff consistently and continuously entertained the view that the price posting on the HP website was a mistake. Thus, 119 It is apparent from this overview that the Canadian courts have integrated through their equitable jurisdiction the concept of common law mistake within the rubric of unconscionability. 133 It is however clear that the law should not take cognisance of bad bargains and misapprehension that do not affect a fundamental or essential aspect of a contractual relationship. The web merchant, unless he qualifies his offer appropriately, by making it subject to the availability of stock or some other condition precedent, could be seen as making an offer to sell an infinite supply of goods. Here are some examples of case citations for other jurisdictions. The object of the exercise is to determine what each party intended, or must be deemed to have intended. Case Update: B2C2 Ltd v Quoine Pte Ltd [2019] SGHC(I) 3; Quoine v B2C2 In Chwee Kin Keong v. Digilandmall.com Pte Ltd ,1 one of the defendant's employees mistakenly uploaded the contents of a training template onto the defendant's website, resulting in the retail price of S$3,854 for a commercial laser printer on the website being replaced with the figure S$66. In New Zealand, the legislature enacted the Contractual Mistake Act 1977. When pressed as to whether he visited other websites, he said he could not confirm that one way or the other. Chwee Kin Keong v Digilandmall.com (2005) - Singaporean case 3d printers sold for $66 instead of $3,800. Having ascertained the true market price, it would have appeared crystal clear, given the huge disparity in the pricing, that a manifest mistake had occurred. The decision of V.K. com Pte Ltd30 that was primarily about unilateral mistake. These statements are not to be interpreted as a clarion call to rewrite commercial agreements because of a partys unreasonable or ignoble behaviour. Vincent. The defendant, on the other hand, contends that the law should not penalise a party who has unwittingly and genuinely made a unilateral mistake which was known or ought to have been known by the plaintiffs. Neither party raised any objections. Borneo United Sawmills Sdn Bhd v. MUI Continental Insurance Bhd (Marine insurance - Loss of goods - Claim for loss of goods under Marine Cargo Policy) [2009] 8 CLJ 217. If he was prepared to commit this view in writing to a larger circle of 54 friends and business associates after his communication with the second and third plaintiffs, he would certainly have shared this view with his close friends with even greater candour and detail. We are only concerned with the question whether relief might be given for common mistake in circumstances wider than those stipulated in Bell v Lever Bros Ltd [1932] AC 161. 152 This view has also found support in the Singapore context. In the context of its true market value the absurd price of $66 was almost the commercial equivalent of virtually giving away the laser printers. Indeed, in difficult cases, the courts in several common law jurisdictions have gone to extraordinary lengths to conjure up consideration. The first plaintiff introduced him to the other plaintiffs. The reach of and potential response(s) to such an advertisement are however radically different. After placing his second order, he admitted making further searches on the Internet to fortify my view that the price of the $66 per printer was not a mistake He was also the only plaintiff who placed an order on the Digilandmall website. If the defendant were right, they maintain, uncertainty would prevail in the commercial world and more particularly in Internet transactions. Chwee Kin Keong and others v Digilandmall.com Pte Ltd [2005] 1 SLR(R) 502; [2005] SGCA 2. Voces del tesauro. The sender will usually receive a prompt response. He graduated with an accounting degree from NTU. Chwee Kin Keong and Others v Digilandmall.com Pte Ltd, Whether amendment of particulars of pleadings at conclusion of submissions allowed, Facts raised in proposed amendments addressed during trial and submissions, Whether promise by buyer to pay for goods, in exchange for delivery of goods, constituted sufficient consideration, Electronic Transactions Act (Cap 88, 1999 Rev Ed), Whether automated e-mail responses from seller amounted to acceptance of buyer's offer, Seller's unilateral mistake as to price of goods posted on website, Whether online buyer entitled to enforce contract against seller, 3 All six plaintiffs are graduates, conversant with the usage of the Internet and its practices and endowed with more than an adequate understanding of business and commercial practices. The plaintiffs orders were processed by the defendants automated system and confirmation notes were automatically despatched to the plaintiffs within a few minutes. 137 Furthermore, from the evidence adduced, it became clear that the defendant had intentionally put the words call to enquire instead of, say, the phrase subject to stock availability in an attempt to entice would-be purchasers to place orders with them. Any reasonable person, given the extent of the knowledge and information the plaintiffs were armed with, would have come to a similar conclusion. Prior to being self-employed, he was a corporate banker with Standard Chartered Bank, Singapore, for four years. Pages 74 Ratings 100% (5) 5 out of 5 people found this document helpful; 128 The most significant judicial pronouncement supporting this view emanates from the recent English Court of Appeal in Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd [2003] QB 679, a case of common mistake. Promotions would be indicated by a P inside a yellow circle next to the product in question. 110 In OT Africa Line Ltd v Vickers Plc [1996] 1Lloyds Rep 700 at 703, ManceJ held that the objective theory ought not to apply if a party had knowledge that a mistake had occurred: The question is what is capable of displacing that apparent agreement. 28 In any event, the first plaintiffs commercial background and business experience alone would have amply alerted him to the likelihood of the pricing being a mistake, even without his conversation with Desmond. 146 A purchaser in a case of apparent unilateral mistake, who purchases for genuine own use a product, may not always be viewed as guilty of engaging in snapping up. The plaintiffs assert they were not aware of the defendants mistake when they placed their orders, and had believed the offer was genuine. Section13 of the ETA deems that a message by a partys automated computer system originates from the party itself. Altogether he sought to purchase 760 units, the largest number of orders placed by anyone between 8 and 13January 2003. Such conduct is akin to that of an unscrupulous commercial predator seeking to take advantage of an error by an unsuspecting prey by pouncing upon it before the latter has an opportunity to react or raise a shield of defence. While this is the general principle for shop displays, it is open to a merchant to offer by way of an advertisement the mechanics of a unilateral or bilateral contract. Slade, in a well reasoned article written not long after, 128 The most significant judicial pronouncement supporting this view emanates from the recent English Court of Appeal in, Thus the premise of the equitys intrusion into the effects of the common law is that the common law rule in question is seen in the particular case to work injustice, and for some reason the common law cannot cure itself. Doctrine and fairness in the law of contract - Cambridge Core Offer and acceptances have to reach an intended recipient to be efective. Notwithstanding, the defendant does not take issue with this as the sixth plaintiffs orders were received and the appropriate automated responses generated. 97 Different rules may apply to e-mail transactions and worldwide web transactions. Whether the parties have reached agreement on the terms is not determined by evidence of the subjective intention of each party. hahaha means S$132, Desmond 13/01/20 01:43 even $500 is a steal. Case Summary The leading Canadian decision in this area is the case of McMaster University v Wilchar Construction Ltd (1971) 22DLR(3d) 9 which, incidentally, was cited with approval by the Australian High Court in Taylor v Johnson. It argues that the decision is both fair and economically grounded, and proposes an alternative view to that offered by classical contract law - one that sees fairness intertwined Two issues had arisen. Administrative Law in Common Law Countries. June Proctor, 1997, p. 13. Hwa Lai Heng Ricky v DBS Bank Ltd and another appeal and another After all, what would he do with 100 obsolete commercial laser printers? Kiat Boon, Daniel SENG - NUS Law Furthermore, unlike a fax or a telephone call, it is not instantaneous. How come got such thing? His counsel contends that the idea the price was a mistake never arose in the second plaintiffs mind; he was preoccupied with thinking about the profit potential of the laser printers. This provision acknowledges that the essential framework of an electronic contract needs to be considered in the usual manner; in other words, principles of contract formation, consideration, terms and conditions, choice of law and jurisdictional issues need to be examined. Desmond: 13/01/20 01:33 how many u intend to get? Certainty in commercial transactions should not be trifled with, as this will inevitably affect how commercial and business exchanges are respected and effected. A contract is normally concluded when an offer made by one party (the offeror) is accepted by the party to whom the offer has been made (the offeree). Amendments after conclusion of submissions. Such errors can be magnified almost instantaneously and may be harder to detect than if made in a face to face transaction or through physical document exchanges. Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR(R) 594; [2004] 2 SLR 594 (refd) Gay Choon Ing v Loh Sze Ti Terence Peter [2009] 2 SLR(R) 332; [2009] 2 SLR 332 Despite their familial relationship, the legal relationship between the two of them was that of agent and principal. To that extent, his evidence that he subsequently dismissed the notion altogether is unacceptable.