The complainants had ordered over 100 printers each at this price. His Internet research alone would have confirmed that. Despite the general views expressed in. The fact that it may have been negligent is not a relevant factor in these proceedings. 143 The stark gaping difference between the price posting and the market price of the laser printer would have made it obvious to any objective person that something was seriously amiss. 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. The decision of the British Columbia Court of Appeal in 25659 BC Ltd v 456795 BC Ltd (1999) 171DLR(4th) 470 at [25] to [26], is instructive: 25 The law of mistake was discussed in depth by McLachlinCJBC in First City Capital Ltd v BC Building Corp (1989), 43BLR 29 (SC). 152 This view has also found support in the Singapore context. This may have created formatting or alignment issues. I note that Chitty at para5-089, fn25 sagely opines that Taylor v Johnson does not represent English law, at least, where the other party knows that a mistake has been made. I categorically reject their evidence in so far as it attempts to hermetically compartmentalise their knowledge and discussions. It is, in large measure, determined by making an objective appraisal of the exchanges between the parties. When notified and satisfied that this transaction was successful as well, he placed a final order at 4.21am for ten laser printers on the HP website, charging this to his credit card. 91 There is no real conundrum as to whether contractual principles apply to Internet contracts. In this case we have heard full argument, which has provided what we believe has been the first opportunity in this court for a full and mature consideration of the relation between Bell v Lever Bros Ltd [1932] AC 161 and Solle v Butcher. 5 A related website for corporate clients and re-sellers (the Digiland commerce website) is owned and operated by a related entity, Digiland International Limited (DIL). Websites often provide a service where online purchases may be made. Their reference to arbitraging was a nebulous fig leaf designed to legitimise their conduct in a cloak of legal and commercial respectability. 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). Section13 of the ETA deems that a message by a partys automated computer system originates from the party itself. They stoutly assert that they were too preoccupied with the realisation of potential profits through a so-called arbitrage position between different markets to contemplate that an error had been made. We can understand why the decision in Bell v Lever Bros Ltd did not find favour with Lord DenningMR. An equitable jurisdiction to grant rescission on terms where a common fundamental mistake has induced a contract gives greater flexibility than a doctrine of common law which holds the contract void in such circumstances. The fact that the acceptance was automatically generated by a computer software cannot in any manner exonerate the defendant from responsibility. E-mails are processed through servers, routers and Internet service providers. He graduated from NTU as a bachelor of business studies, specialising in financial analysis. 37 The second plaintiff was insistent in his evidence that there was no communication from the first plaintiff alerting him to the likely existence of the mistake; he contends the first plaintiff merely apprised him of a good deal and sent him the weblink to the HP website. The amounts ordered and the hurried and hasty manner in which the orders were executed are of cardinal importance. Lord Phillips of Worth MatraversMR observed in a withering analysis at [156], [157], [160] and [161]: 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. 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. Transactions over websites are almost invariably instantaneous and/or interactive. The only court judgement on the theme is Chwee Kin Keong v. Digilandmall.com Pte Ltd, a judgement of the Singapore High Court. I accept that this is capable of including circumstances in which a person refrains from or simply fails to make enquiries for which the situation reasonably calls and which would have led to discovery of the mistake. It is not in dispute that the defendant made a genuine error. The affidavits did not add anything new. 26 It is clear from the priority status accorded to the e-mail that the first plaintiff was sharing his knowledge of a good deal. 89 In the circumstances, I had little hesitation in allowing the amendments sought by the defendant. (See for example the approach in, 142 The plaintiffs were bound by personal relationships as well as past and present common commercial interests. 138 Effectively, the defendant was attempting in this contention to assert that it could have its cake and eat it as well. Chwee Kin Keong v. Digilandmall.com Pte. He classifies mistake in the following manner at 386: If attention is fixed merely on the factual situations, there are three possible types of mistake: common, mutual and unilateral. The product descriptions in all the other pages of the respective websites, at the material time, carried a full detailed description of all advertised products. 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. [emphasis added]. Though the six plaintiffs accounted for only 18 of these purchase orders, they figure prominently among the 11 individuals who ordered more than 50 laser printers. Different protocols may result in messages arriving in an incomprehensible form. Indeed, the time may have come for the common law to shed the pretence of searching for consideration to uphold commercial contracts. The other school of thought views the approach outlined earlier with considerable scepticism. NZULR, vol. It appears that in Convention transactions, the receipt rule applies unless there is a contrary intention. COURT. Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] 1 SLR 502: [2005] SGCA 2 Context: This Case deals with the issue of unilateral mistake. Again he attempted to minimise the impact of these observations by saying his subsequent searches erased all such doubts. 155 The Internet has revolutionised commerce and radically altered the manner in which commercial interaction currently takes place. HIGH COURT. 47 Not content with making his own purchases, he woke up his brother and transacted 330 units on his behalf. The law will have to organically adapt itself to respond to new challenges without compromising on certainty and fairness. 68 Yeow Kinn Oei is 29 years old and the brother of the third plaintiff. Daniel was previously a partner and head of the technology practice at Messrs Rajah & Tann. Normally the contract is only concluded when the acceptance is communicated by the offeree to the offeror. 14 The first, second and fourth plaintiffs became acquainted with each other when they studied at the Nanyang Technological University (NTU). He received this information through an sms message. 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. Inflexible and mechanical rules lead to injustice. Interestingly, Desmond also remarked to the first plaintiff that he wasnt greedy before I tok to u. Prior to being self-employed, he was a corporate banker with Standard Chartered Bank, Singapore, for four years. 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. Chwee Kin Keong and others v. Digilandmall.com Pte Ltd. [2004] SGHC 71. He was also involved in initiating the Channel NewsAsia report (see [78] and [79] infra). I have found that the plaintiffs had at all material times knowledge of or, at the very least, a real belief that an error had been made by the defendant in the price posting. It was held that the contract between the parties was void. Yong Pung HowCJ in Tribune Investment Trust Inc v Soosan Trading Co Ltd [2000] 3 SLR 405 at [40] opined: [T]he function of the court is to try as far as practical experience allows, to ensure that the reasonable expectations of honest men are not disappointed. The CISG has currently been adopted by 95 Contracting States world-wide. 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. The evidence incontrovertibly indicates that the first plaintiff himself entertained this view for the entire period he was in communication with the second and third plaintiffs. He admitted in cross-examination to being the lawyer for this group of people when they had questions like these in the present proceedings. Scorpio: 13/01/20 01:17 what hp online?? 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. In doing so, they appear to have also conflated equitable and common law concepts. Nor could he satisfactorily explain why he initially made the Internet searches to ensure the offer was genuine. 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. By their own admission, they made Internet searches through various search engines to ascertain the profits they could make. If this rule applies to international sales, is it sensible to have a different rule for domestic sales? case concerning the purchase of laser printers from an online retailer, Chwee Kin Keong v Digilandmall 76 : To effect the purchase transactions on the respective websites, the plaintiffs had to navigate through several web pages. The credit card payments had not been processed. Any reasonable person, given the extent of the knowledge and information the plaintiffs were armed with, would have come to a similar conclusion. 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. Singapore Court of Appeal. He offered to buy a laser printer from Desmond at double the price, that is $132. Needless to say, this goes to the very heart of the claims sustainability. In the Singapore context a similar approach has been adopted by the Court of Appeal in Aircharter World Pte Ltd v Kontena Nasional Bhd [1999] 3 SLR 1 at [30] and [31], and Projection Pte Ltd v The Tai Ping Insurance Co Ltd [2001] 2 SLR 399 at [15]. 72 To effect the purchase transactions on the respective websites, the plaintiffs had to navigate through several web pages. This constituted more than a quarter of the total number of laser printers ordered. Pginas: 93: High Court - Suit n 202 of 2003. This new template was designed to facilitate instantaneous price changes allowing them to be simultaneously reflected in the relevant Internet web pages. 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. They assert that spending only $105,996 to procure laser printers with an actual market value of $6,189,524 is wholly irrelevant; they are entitled to a good bargain. This is an online dating and match-making service. ThompsonJ of the Ontario High Court applied Hartog v Colin & Shields ([115] supra) and held that the parties were not ad idem and found that no contract had been formed. 27 The first plaintiff obviously took the view that the advertisement should be acted upon urgently. Where either mutual or unilateral mistake is pleaded, the very existence of agreement is denied. Notwithstanding occasional failure, most e-mails arrive sooner rather than later. Certainty in commercial transactions should not be trifled with, as this will inevitably affect how commercial and business exchanges are respected and effected. 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 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. Scorpio: 13/01/20 01:24 huh?? This contention is wholly untenable. He confirmed through these searches that the usual price of the laser printers was in the region of US$2,000. Media reports after the discovery of the mistake. The defendants argued this pricing was a unilateral mistake and that the complainants took advantage of this. The phrase call to enquire, it is contended, was in effect a condition precedent. It will firstly discuss the fact that such a tort Our academic writing and marking services can help you! Indeed, in difficult cases, the courts in several common law jurisdictions have gone to extraordinary lengths to conjure up consideration. As a matter of fairness, allowing amendments at a late stage should usually go hand in hand with granting leave to the other party to adduce further evidence, if necessary. 151 The claims by the plaintiffs are audacious, opportunistic and contrived. 3. 71 The sixth plaintiffs position can be dealt with very briefly. It can be persuasively argued that e-mails involving transactions embraced by the Convention are only effective on reaching the recipient. 93 Website advertisement is in principle no different from a billboard outside a shop or an advertisement in a newspaper or periodical. He acknowledged having had conversations with the other plaintiffs about how much money we can sell the printer and how much we can make and about storage space as well as how many units we intend to buy. The marrow of contractual relationships should be the parties intention to create a legal relationship. Court name Singapore High Court. 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. 145 If the price of a product is so absurdly low in relation to its known market value, it stands to reason that a reasonable man would harbour a real suspicion that the price may not be correct or that there may be some troubling underlying basis for such a pricing. In Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR (R) 594 (" Digilandmall.com "), the plaintiffs concerned placed orders over the Internet for a total of 1,606 Hewlett Packard commercial laser printers on the defendant (seller's) websites. 80 Upon the conclusion of submissions, I directed counsel to appear before me. 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. I cannot accept that. They have a common interest in bridge and this helped to cement their friendship. While these contentions were well within the scope of the evidence adduced and their respective lines of cross-examination, they appeared to transgress their respective pleadings. You may find the status of your order by calling us at (phone number given) Special instructions: Please call to advise delivery date and time. 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. In effect the Internet conveniently integrates into a single screen traditional advertising, catalogues, shop displays/windows and physical shopping. Desmond: 13/01/20 01:44 if they dont honor it Scorpio: 13/01/20 01:45 sell me one lah name your price ;-) sue them lor , Desmond: 13/01/20 01:45 I think they will give vouchers or special deals. 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. Court Judgement chwee kin keong and others digilandmall.com pte ltd slr sghc 71 suit no: suit decision 12 apr 2004 date: court: coram: counsel: high court rajah Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew My Library Discovery Institutions London School of Business and Finance SAA Global Education Hence the first plaintiffs cryptically worded but highly significant mass e-mail where he adverted to the fact that he did not know if the defendant would honour the contracts but in any event wished all the recipients good luck. 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]. I hope by the time you see this email, the price is still at S$66.00 coz they might change it anytime. He is described by his counsel in submissions as a prudent and careful person. CISG-online is a research platform dedicated to the law and practice of the United Nations Convention on Contracts for the International Sale of Goods adopted in Vienna on 11 April 1980 (CISG), as well as related areas of international commercial law. 77 Soon after the defendant informed the plaintiffs that they did not intend to deliver the laser printers, the plaintiffs took their claims to the press. What is urged is that, owing to a common error as to some fundamental fact, the agreement is robbed of all efficacy. 123 One view maintains that the mistaken party can either attempt to have the contract declared void at common law if the mistake is fundamental or radical, or alternatively seek a remedy in equity, which could include rescission. He is also described as the sole proprietor and manager of two other businesses that provide business support and consultancy. 126 The Australian courts appear to have relied on the views of Lord DenningMR in Solle v Butcher to establish a wholly different doctrinal approach to mistake and have purportedly applied a fused concept of law and equity to the law on mistake. Because it was simply a matter of time before the error would inevitably be noticed and the pricing inevitably corrected. 52 He then called the second plaintiff on his handphone and informed him that he intended to purchase 50 laser printers. 84 It is axiomatic that a court will generally be cautious if not reluctant to effect any amendments once the hearing has commenced; even more so once the evidential phase of the proceedings has been completed. The bites, however, may taste quite different and cause different sensations. Certainly, none of them had ever been induced to conduct transactions on such a scale on the Internet for any product, let alone sophisticated commercial laser printers. There is constant tension in our legal system to accommodate the Janus-like considerations of fairness and finality. I agree that this exception should be kept within a very narrow compass. This gives their courts a broad and elastic jurisdiction to deal with commercially inappropriate behaviour. Neither party raised any objections. Just as the Law Reform (Frustrated Contracts) Act 1943 was needed to temper the effect of the common law doctrine of frustration, so there is scope for legislation to give greater flexibility to our law of mistake than the common law allows. Prior to this he was an associate in the Intellectual Property and Technology Department of Allen & Gledhill. This case is a paradigm example of an error on the human side. Clout issue 43. Take a look at some weird laws from around the world! This short but highly significant e-mail reads: Subject: IMPT HP Colour LaserJet going at only $66!! 44 He made his first purchase of ten laser printers at about 2.42am. They are not mechanical rules to be applied in a vacuum, devoid of a contextual setting. To confine this exception to instances of fraud would make the concept of unilateral mistake redundant. Landmark decision on unilateral mistake of fact in respect of the price of product listed on an online mall and the purchases made thereon . 144 I find, in the alternative, that the plaintiffs, given each of their backgrounds, would in any event, each have separately realised and appreciated, before placing their purchase orders, that a manifest mistake had occurred even if no communications on the error had taken place between them.
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