In the final stage of the process, after the payment mode was indicated, each of the plaintiffs was notified successful transaction your order and payment transaction has been processed. 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. It is unequivocally unethical conduct tantamount to sharp practice. I cannot accept that. Placing an advertisement on the Internet is essentially advertising or holding out to the world at large. The credit card payments had not been processed. chwee kin keong and others digilandmall.com pte ltd sghc 71 case number suit decision date 12 april 2004 high court coram rajah jc counsel name(s) tan sok ling Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew My Library Discovery Institutions Republic Polytechnic London School of Business and Finance Take a look at some weird laws from around the world! Normally the contract is only concluded when the acceptance is communicated by the offeree to the offeror. At 4.16am he placed another order for one laser printer, by credit card, on the HP website. 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. Chwee Kin Keong v Digilandmall Pte Ltd The defendant, Digilandmall.com Pte Ltd, were an online IT company that sold related software and hardware from Singapore. CHWEE KIN KEONG v DIGILANDMALL.COM Pte Ltd (2005) SGCA 2. 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. The third plaintiff informed him that laser printers were being sold at $66 each and that these laser printers could be sold at a much higher price about a thousand plus. Unilateral Mistake at . In the context of the present proceedings, the extra-judicial observations of Lord Steyn in Contract Law: Fulfilling the Reasonable Expectations of Honest Men (1997) 113LQR 433 at 433 are particularly apposite: A thread runs through our contract law that effect must be given to reasonable expectations of honest men. He claims visiting, 62 Like the second plaintiff, the fifth plaintiff played a pivotal role in the events leading to these proceedings. 111 In Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] 1 SLR(R) 502 ("Chwee Kin Keong"), this court said at [101]: Under O 20 r 5(1) of the Rules of Court (Cap 322, R 5, 2004 Rev Ed), the court may grant leave to amend a pleading at any stage of the proceedings. First, it is clear that the line of Australian and Canadian cases have broadened their equitable jurisdiction on the strength of dicta attributable principally to Lord Denning. Tiong Min Yeo - SSRN It is not in dispute that the defendant made a genuine error. In common mistake, both parties make the same mistake. A steady stream of decisions from common law courts indicate a measured but nevertheless distinctly incremental willingness to extend the scope of the exception to not just actual knowledge, but deemed or constructive knowledge as well. Chwee Kin Keong v Digilandmall Pte Ltd - LawTeacher.net 29 The first plaintiff struck me as an opportunistic entrepreneur. It became apparent that the plaintiffs misplaced reliance on the extract earlier cited probably also explained their singularly odd conduct in applying for amendments, only to withdraw their application later in attempting to deny the defendant an opportunity to amend its pleadings. It was listed at the price of $66, when it was advertised on the official HP website for $3,854. Abstract. 36 The second plaintiff was the key person and pivotal in the entire chain of events. They deny having had any communications amongst themselves about the possibility, let alone probability, that the price posting on the website could have been a mistake. Civil Procedure Pleadings . He is also described as the sole proprietor and manager of two other businesses that provide business support and consultancy. That is sufficient in these circumstances. He is currently a supervisor in the taxation department of an international accounting firm, Deloitte & Touche, specialising in corporate taxation services. The recipient rule appears to be the logical default rule. 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. As this is a critical issue, it is imperative that each of their positions be carefully evaluated. The reason for this inconsistent conduct surfaced later. The Canadian and Australian cases have moved along with the eddies of unconscionability. The current general approach is correctly stated in Professor Jeffrey Pinslers Singapore Court Practice 2003 (LexisNexis, 2003) at para20/5/7: An amendment may be allowed even after both parties have made their closing submissions. Put another way, that decision seems to indicate that the effect of a unilateral mistake is only to render a contract unenforceable rather than void. Caveat emptor remains a cornerstone of the law of contract and business relationships. Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] - YouTube He tried to convey the impression that it never struck him that a mistake in the price posting of the laser printer could have occurred. These considerations take precedence over the culpability associated with causing the mistake. [emphasis added]. Consideration was less than executory and non-existent. This may be too high a price to pay in this area of the law. This is to be contrasted with: Hare, Inequitable Mistake (2003) 62CLJ 29, Chandler et al, Common Mistake: Theoretical Justification and Remedial Inflexibility [2004] JBL 34. However, if the defendant did not have stock, it would immediately call the supplier and procure the products for the end-user. It is essential that the law be perceived as embodying rationality and fairness while respecting the commercial imperative of certainty. 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. The defendant, Digilandmall.com Pte Ltd, were an online IT company that sold related software and hardware from Singapore. Case Note: Singapore - CORE A-Z of Cases | Carlil & Carbolic - Law Study Resources The knowledge that the offer is not meant according to its literal terms simply displaces the objective theory of contract. Thus, while the idea of snapping up may well apply in cases one side is aware of the other sides error, I do not think it can be applied literally in the constructive knowledge cases. 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. SingletonJ held at 568: The offer was wrongly expressed, and the defendants by their evidence, and by the correspondence, have satisfied me that the plaintiff could not reasonably have supposed that that offer contained the offerers real intention. There are, however, other sound reasons to argue against such a rule in favour of the recipient rule. This can be before or during the trial, or after judgment or on appeal. The plaintiffs were not being candid when they portrayed very limited exchanges between themselves, dealing allegedly with only the profits to be made and their ability to resell the laser printers. 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. Chwee Kin Keong vs Digilandmall.com - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. 153 These statements of jurisprudence are of cardinal importance in understanding and fashioning the law of contract. How could one seek to calculate the profit margin before finding out the true market price of the laser printer? From time to time they communicate with each other via the Internet and the short messaging system (sms). I do not accept that there were no discussions between them on the price posting being an error. 6 On Wednesday, 8January 2003 between 3.00pm and 4.00pm, DILs employees conducted a training session at the defendants premises. Theoretically the supply of information is limitless. It appears that he was also in touch with the fifth plaintiff as evidenced by an e-mail sent later that morning by the fifth plaintiff to both him and the second plaintiff containing research on what companies who had made similar Internet errors did. 19 Later in the morning, at about 4.15am, the fourth plaintiff sent the following e-mail to the first plaintiff, copied to the second plaintiff only: Subject: Re: IMPT HP Colour LaserJet going at only $66!! The law may not imply a condition precedent as to the availability of stock simply to bail out an Internet merchant from a bad bargain, 104 The creases over the theoretical approach to adopt in determining the existence of contracts have for some time now been decisively ironed out in favour of the objective theory. At 4.15am, he sent an email to the first plaintiff, copied to the second plaintiff, with a happy emoticon following check out the prices here (see [19]. Quite apart from this singularly precise timing, his exchange with Ms Toh is noteworthy for the following reason: when he told her about the various concluded purchases of the laser printers, she immediately thought it was a mistake and that HP would not honour the contracts. Carlill V Carbolic Smoke Ball Case - 1840 Words | Bartleby 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. The sixth plaintiff is precluded from asserting his ignorance. Furthermore, they relied on a passage from Singapore Civil Procedure 2003 (Sweet & Maxwell Asia, 2003) at para20/8/47 that asserts: At the trial leave to amend particulars will as a rule be refused (Moss v Malings (1886) 83ChD 603). An FAQ guide to electronic contracts in Singapore - Lexology But it is difficult to see how that can apply here. Someone referred me to the HP website which shows the price of this HP Colour LaserJet 4600 Series as S$66.00. In doing so, they appear to have also conflated equitable and common law concepts. 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. 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. 41 The second plaintiff seems to have redefined the facts to achieve his objective in these proceedings. [2004] SGHC 71 - eLitigation Scorpio: 13/01/20 01:25 ok but how come got such a good deal? In turn, the ICQ chat session involving the first plaintiff and the respective plaintiffs exchange of e-mails played a significant role in undermining their credibility and claims. 90 After leave was granted to amend the defence, each of the plaintiffs filed a further short affidavit refuting knowledge of the mistake relating to pricing. Though he initially denied this in cross-examination, he had to accept this when confronted with his own e-mail as irrefutable evidence. The CISG has currently been adopted by 95 Contracting States world-wide. 27 The first plaintiff obviously took the view that the advertisement should be acted upon urgently. 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 Postal Acceptance Rule in the Digital Age - ResearchGate Here are some examples of case citations for other jurisdictions. Indeed, I am satisfied to the contrary. He conducted the searches to ascertain what the laser printers true price was. Desmond: 13/01/20 01:41 u want it for profit or personal use? The first, second and third plaintiffs have been friends for a long time and are bound by common business interests. This is in contrast to the English position where after several decades Hartog v Colin & Shields still remains the locus classicus. 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. In addition, he despatched e-mails to the fourth and fifth plaintiffs attaching a hyperlink to the HP website. Often the essence of good business is the use of superior knowledge. . 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. The notation in the checkout-order confirmation further confirmed that the defendants concern was with the delivery time rather than with qualifying its obligation by reference to stock availability as a condition precedent. PDF E-commerce Contract For Sale Of Printers Held Void For Obvious Mistake 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. 103 The amalgam of factors a court will have to consider in risk allocation ought to include: (a) the need to observe the principle of upholding rather than destroying contracts, (b) the need to facilitate the transacting of electronic commerce, and. It is pertinent to note that she placed orders for 32 laser printers including 20 units she ordered on behalf of her sister. 93 Website advertisement is in principle no different from a billboard outside a shop or an advertisement in a newspaper or periodical. [2005] SGCA 2 - eLitigation He placed another order for a further 150 printers at 3.14am, followed by two further orders for 300 printers each at about 3.56am and 3.59am. This is one of the first prominent case that deals with the issue of web based contract. His Internet research alone would have confirmed that. This e-mail was sent only after the first plaintiff had made his own Internet searches on the pricing of the laser printer. Scorpio: 13/01/20 01:24 huh?? 74 Under product description on each webpage, instead of the actual description of the laser printer which in this case should have been HP9660A Color LaserJet 4600, only the numerals 55 appeared: this was the result of Samuel Teos earlier inadvertent input. The first, second and third plaintiffs have been friends for a long time and are bound by common business interests. 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. It is not necessary to prove actual knowledge on the part of the non-mistaken party in order to ground relief, as in this context one is taken to have known what would have been obvious to a reasonable person in the light of the surrounding circumstances: Hartog v Colin and Shields [1939] AllER 566 (KBD); McMaster University; Stepps Investments, supra; Taylor, supra. The element of constructive knowledge based upon what a reasonable person ought to know is premised upon that person not being conscious of the error. It is germane to observe that none of the cases purporting to follow Solle v Butcher [1950] 1 KB 671 have with any degree of clarity defined the parameters of equitable mistake in contradistinction to a common law mistake. One of the few cases on electronic contract formation in Singapore was Chwee Kin Keong v Digilandmall. The contract stands according to the natural meaning of the words used. See now, also, 16 When the first plaintiff eventually succeeded in accessing the HP website, he immediately placed an order for 100 laser printers at about 2.05am, charging the transaction to his credit card. In light of these general observations, I now address the law on unilateral mistake. Inflexible and mechanical rules lead to injustice. Court reference 202 of 2003. To my mind, the confirmation through the subsequent searches that the actual price of the laser printer was, in fact, US$2,000 would, if anything, have affirmed his belief that an error had occurred. The plaintiffs attempted to take advantage of the defendants mistake over the Internet. Cases of fraud and misrepresentation, and undue influence, are all catered for under other existing and uncontentious equitable rules. V K Rajah JC: Para continuar leyendo. Digilandmall - 502 SINGAPORE LAW REPORTS (REISSUE) [2005] 1 SLR(R COOKE v OXLEY (1790) 3 T. R. 653. 147 It is improper for a party who knows, believes or ought, objectively speaking, to have known of a manifest error to seek commercial benefit from such an error. In Chwee Kin Keong v . The reach of and potential response(s) to such an advertisement are however radically different. It may be impractical and unjust to demand that the mistaken party actually prove the knowledge of a substantial number of people who effect numerous purchases. One reason for this is the eternal tension faced by courts and judges alike in seeking a just equilibrium between commercial certainty and justice in a particular case. It is an important subject for the future development of English contract law. There is one important exception to this principle. Where common mistake is pleaded, the presence of agreement is admitted. 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.
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