At 4.16am he placed another order for one laser printer, by credit card, on the HP website. We are, Our conclusion is that it is impossible to reconcile, 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, 129 The careful analysis of case law undertaken by that court yields a cogent and forceful argument that Lord DenningMR was plainly attempting to side-step, 130 It can be persuasively argued that given (a)the historical pedigree of the cases, (b)the dictates of certainty and predictability in the business community and (c)the general acceptance of the existence of distinct common law rules, it is preferable not to conflate these concepts. The most recent and authoritative pronouncement in this area (per Lord Phillips of Worth Matravers in Shogun Finance Ltd v Hudson [2003] 3 WLR 1371 at [123]) states: 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). This contention is wholly untenable. Case Update: B2C2 Ltd v Quoine Pte Ltd [2019] SGHC(I) 3; Quoine v B2C2 In a physical sale, the merchant can immediately turn down an offer to purchase a product that has been advertised; otherwise he may be inundated with offers he cannot justify. There is one important exception to this principle. The rationale for this is that a court will not sanction a contract where there is no, 150 The plaintiffs have contended that this court ought to follow the decision in, A thread runs through our contract law that effect must be given to, 152 This view has also found support in the Singapore context. There was no element of surprise or prejudice to the plaintiffs as the points raised had already been developed by the defendant and addressed by the plaintiffs. The case went before both the High Court and the Court of Appeal. She opined that situations where unilateral mistake had been considered were those involving fraud or a very high degree of misconduct. 80 Upon the conclusion of submissions, I directed counsel to appear before me. 93 Website advertisement is in principle no different from a billboard outside a shop or an advertisement in a newspaper or periodical. 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. 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. Chwee Kin Keong and Others v Pte Ltd PDF fileChwee Kin A party may not snap at an obviously mistaken offer: McMaster. 112 Phang ([106] supra, at 418) rightly observes: It must be stressed that, in this context, a man is taken to have known what would have been obvious to a reasonable person in the light of the surrounding circumstances. The present article analyses the many important issues that are raised by what is probably the first case on Internet mistake - the Singapore High Court decision of Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR 594. A real product number HP9660A was inserted in the new template as the prototype for which fictional prices were to be changed on the three relevant websites. Phang, Controversy in Common Mistake [2003] Conv 247; Reynolds, Reconsider the Contract Textbooks (2003) 119LQR 177. 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. Prior to being self-employed, he was a corporate banker with Standard Chartered Bank, Singapore, for four years. To that extent, his evidence that he subsequently dismissed the notion altogether is unacceptable. In Chwee Kin Keong v Digilandmall.com Pte Ltd, the Singapore Court of Appeal was asked to consider if the decision in Great Peace Shipping also had the effect of excluding equity's jurisdiction . In the High Court, the learned judge ("the Judge") decided, in the main, in favour of the Purchaser. Both parties expressed that they wished to effect amendments to mirror evidence that had been adduced in the proceedings. Nor should parties regard pleadings as assuming an amoeba-like nature, susceptible to constant reshaping. Desmond intimated that the defendant would give vouchers or special deals as a matter of equitable compensation should it not honour the purchase orders. It is important not to force into a Procrustean bed principles that have to be modified or discarded when considering novel aspects of the Internet. Because it was simply a matter of time before the error would inevitably be noticed and the pricing inevitably corrected. [emphasis added]. In principle, there is no difference between amending particulars and amending say, a cause of action, defence or any other part of substance in a pleading. 142 The plaintiffs were bound by personal relationships as well as past and present common commercial interests. Examples of such mistakes would include (a)human error (b)programming of software errors and (c)transmission problems in the communication systems. The fact that the acceptance was automatically generated by a computer software cannot in any manner exonerate the defendant from responsibility. 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 fifth plaintiff was also a member of this bridge group. 49 Tan Cheng Pengs brief evidence did not really assist the third plaintiff. Not all one-sided transactions or bargains are improper. 102 Inevitably mistakes will occur in the course of electronic transmissions. 71 The sixth plaintiffs position can be dealt with very briefly. I hope by the time you see this email, the price is still at S$66.00 coz they might change it anytime. The following excerpt is particularly significant and compelling: 23 The subsequent exchange further clarifies that the first plaintiff was fully conscious of the potential profit element arising from the purchase of a substantial number of the laser printers. v . 33 After his first order, the second plaintiff contacted the fourth and fifth plaintiffs informing them about the laser printers. In the final analysis, it would appear that the likely existence of an internal error in pricing was clearly within his contemplation. [emphasis added]. The caption in each of the e-mails Successful Purchase Confirmation from HP online says it all. COOTE, B. reference was made by the court to "fraud or a very high degree of misconduct" before the non- mistaken party could be . 152 This view has also found support in the Singapore context. While they did not invariably admit that their searches were made prior to each of the respective transactions, it was plain that they did not tell the whole truth about, 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. As for the common law on unilateral mistake, it is claimed that the acid test for its application is not satisfied. "Unilateral Mistake in Contract: Five Degrees of Fusion of Common Law a 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. Ltd} has the makings of a student's classic for several rea sons: it presents a textbook example of offer and acceptance; it is set in the context 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. Consideration was less than executory and non-existent. Case Note: Singapore | Digital Evidence and Electronic Signature Law Review There could be different considerations. 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. Administrative Law in Common Law Countries. Scorpio: 13/01/20 01:25 ok but how come got such a good deal? Chwee Kin Keong decision - Chwee Kin Keong and Others v Digilandmall Pte Ltd [2004] 2 SLR 594; - Studocu Caso 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 jc tan sok IgnorarExperimenta 'Pergunta a um Especialista' Pergunta a um especialista 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] supra). 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. Chwee Kin Keong decision - Chwee Kin Keong and Others v Digilandmall By their own admission, they made Internet searches through various search engines to ascertain the profits they could make. Free resources to assist you with your legal studies! The object of the exercise is to determine what each party intended, or must be deemed to have intended. Some of the plaintiffs appeared rather coy or ignorant in this regard but I did not find their performance believable. 91 There is no real conundrum as to whether contractual principles apply to Internet contracts. 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. Kin Keong v Digilandmall.com Pte Ltd [2004 . This could account for the substantial number of Canadian cases in this area of the law. He claims visiting, inter alia, the Epinions and Hardwarezone websites, and though it appears that there was at the material time a discussion thread on the error on the Hardwarezone website, the fourth plaintiff denied having seen this. Cases of fraud and misrepresentation, and undue influence, are all catered for under other existing and uncontentious equitable rules. As with any normal contract, Internet merchants have to be cautious how they present an advertisement, since this determines whether the advertisement will be construed as an invitation to treat or a unilateral contract. Rajah J.C. in the Singapore High Court in Chwee Kin Keong v. Digilandmall.com Pte. The web page entitled checkout order confirmation had a notation stating the earliest date on which we can deliver all the products to you is based on the longest estimated time of stock availability plus the delivery lead time. The defendant programmed the software. No modern authority was cited to me suggesting an intended commercial transaction of this nature could ever fail for want of consideration. 72 To effect the purchase transactions on the respective websites, the plaintiffs had to navigate through several web pages. . 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. He graduated with an accounting degree from NTU. It appears to suggest that even if an offer is snapped up, the contract is not void. 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. In-house law team, Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] 1 SLR(R) 502, Contract unilateral mistake Internet Contract Consensus ad Idem Meeting of the Minds Acceptance Offer Void Error. Daniel was previously a partner and head of the technology practice at Messrs Rajah & Tann. David Baxter Edward Thomas and Peter Sandford Gander v BPE Solicitors (a firm) [2010] EWHC 306 (Ch) Dunlop v Higgins (1848) 1 HLC 381. Why? After hearing their evidence, observing them and considering the submissions made on their behalf, there was no doubt in my mind that they were fully conscious that an unfortunate and egregious mistake had indeed been made by the defendant. It is set in the context of internet contracting. 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. 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. Singapore Court of Appeal. The essence of snapping up lies in taking advantage of a known or perceived error in circumstances which ineluctably suggest knowledge of the error. See now, also, In such cases, it would be unconscionable to enforce the bargain and equity will set aside the contract, 26 I respectfully agree with the reasoning of ShawJ in. 63 It is pertinent he too made web searches using the Google search engine. The issue in this case was whether the pricing was a mistake and if the contract would be fulfilled. 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. He has common business interests with the first, third and fourth plaintiffs. 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. These orders were placed at a price of S$66 each, whereas the actual price was S$3,854 each. Who bears the risk of such mistakes? The Instantaneous Transmission of Acceptances. He claimed he wanted to find out how much profit he could make. However, if the defendant did not have stock, it would immediately call the supplier and procure the products for the end-user. In addition, Tan Cheng Peng, the girlfriend and business associate of the third plaintiff, filed an affidavit detailing her communications with him. 73 The sixth plaintiffs orders did not receive matching confirmations from the defendant as his e-mail box was full. As a lawyer, he appears to have been indispensable in the plaintiffs attempts to hold the defendant to the bargain. 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. 2. The first issue dealt with references made by the plaintiffs to certain embargoed material. I invited both parties to indicate if they wished to amend their pleadings. Ltd. Yeo Tiong Min* I. Web Communication: A Review Of Chwee Kin Keong And Others v. Digilandmall.com pte ltd by Rokiah Kadir [2009] 8 CLJ xxi. In light of this, the parties did not address me on the issue of when the contract was formed, though this appears to be a relevant issue depending on which rule is adopted. Desmond: 13/01/20 01:43 coz the HP laser colour printer sells for at least 3 to 4k outside, Desmond 13/01/20 01:44 from US I heard is about USD 2k, Desmond 13/01/20 01:44 its HP and Laser and Coloured. Case name. 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. If the offeree knows that the offeror does not intend the terms of the offer to be those that the natural meaning of the words would suggest, he cannot, by purporting to accept the offer, bind the offeror to a contract: Hartog v Colin & Shields [1939] 3All ER 566; Smith v Hughes (1871) LR6 QB 597. Offer and acceptances have to reach an intended recipient to be efective. The rules of offer and acceptance are satisfied and the parties are of one mind. Take a look at some weird laws from around the world! 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. 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. Unilateral Mistake in Contract: Five Degrees of Fusion of - Jstor If stock of a product has been exhausted, a prospective purchaser cannot sue for specific performance or damages as he has merely made an offer that has not been accepted by the merchant. He placed his first order for 50 units at about 2.58am, and his second order for another 50 units at 3.22am, again through the HP website. His revelation that he did not know if this is an error or whether HP will honour this purchase, not to mention the articulation of his hope that by the time you see this email, the price is still at S$66.00 coz they might change it anytime, are all compelling in reflecting his state of mind and awareness that an error had occurred. He holds an accounting degree from NTU. Rajah J.C. in the Singapore High Court in Chwee Kin Keong v. Digilandmall.com Pte. Amendments after conclusion of submissions. [2004] SGHC 71 - eLitigation He is 32 years old and conducts his own network marketing business. The defendant, Digilandmall.com Pte Ltd, were an online IT company that sold related software and hardware from Singapore. COURT. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. 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. So there is a contract and therefore the defendant is liable in breach of contract. 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.
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