I hope by the time you see this email, the price is still at S$66.00 coz they might change it anytime. This could account for the substantial number of Canadian cases in this area of the law. The sixth plaintiff is precluded from asserting his ignorance. It is an important subject for the future development of English contract law. Both parties expressed that they wished to effect amendments to mirror evidence that had been adduced in the proceedings. This can result from human interphasing, machine error or a combination of such factors. Case Note CONTRACT FORMATION AND MISTAKE IN CYBERSPACE (AGAIN) The 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. Alternatively, knowledge may be readily inferred from what would be regarded as commonly known or notorious facts in the context of the transaction. This gives their courts a broad and elastic jurisdiction to deal with commercially inappropriate behaviour. The rules of offer and acceptance are satisfied and the parties are of one mind. 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. I agree that this exception should be kept within a very narrow compass. 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. Altogether, the second plaintiff purchased 180 units, opting for cash on delivery as the payment mode. 117 It should be emphasised that this stream of authority is consistently recognised by all the major common law jurisdictions. His credibility on the material points was dubious, at best. Chwee Kin Keong v Digilandmall.com Pte Ltd,( [2005]SGCA 2 ) . June 16, 2022; Posted by why do chavs wear tracksuits; 16 . 57 Malcolm Tan is 30 years old and a practising advocate and solicitor. 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. Thus the task of ascertaining whether the parties have reached agreement as to the terms of a contract can involve quite a complex amalgam of the objective and the subjective and involve the application of a principle that bears close comparison with the doctrine of estoppel. In light of these general observations, I now address the law on unilateral mistake. The preface I do not know in no way detracts from this; the e-mail being addressed to a large group of 54 persons, the first plaintiff would simply not have wanted to commit himself by saying I know. Arrival can also be immaterial unless a recipient accesses the e-mail, but in this respect e-mail does not really differ from mail that has to be opened. How come got such thing? The defendants argued this pricing was a unilateral mistake and that the complainants took advantage of this. Counsels approach is flawed. If he was prepared to commit this view in writing to a larger circle of 54 friends and business associates, 47 Not content with making his own purchases, he woke up his brother and transacted 330 units on his behalf. In New Zealand, the legislature enacted the Contractual Mistake Act 1977. This was summarily resolved. Case law Chwee Kin Keong v Digilandmallcom Pte Ltd suggests that General Rule. 88 The fact that the amending party has been tardy or even negligent is a factor that a court can (and in some egregious cases, should) take into account but this is by no means a decisive factor (cf Ketteman v Hansel Properties). 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. These considerations take precedence over the culpability associated with causing the mistake. 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. 48 The third plaintiff annexed to his affidavit the transcript of the Channel NewsAsia report where he was quoted. The marrow of contractual relationships should be the parties intention to create a legal relationship. Their conduct in pursuing their claims cannot by any stretch of the imagination be characterised as having the slightest colour of being legitimate regardless of whether the subjective or objective theories are applied and whether common law or equity is applied in adjudicating this matter. However, not all principles will or can apply in the same manner that they apply to traditional paper-based and oral contracts. The plaintiffs attempted to take advantage of the defendants mistake over the Internet. E-mails are processed through servers, routers and Internet service providers. 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. There can be no other reasonable explanation. 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. I must add that these were far from being ordinary printers for home use. The issue could be critical where third party rights are in issue as in. 52 He then called the second plaintiff on his handphone and informed him that he intended to purchase 50 laser printers. 8 The proper description of the laser printer, HPC9660A Color LaserJet 4600, was, as a result of the accident, replaced by the numerals 55; while the numerals 66 replaced the correct price of the laser printer priced at $3,854 and the numerals 77 replaced the original corporate price of the laser printer priced at $3,448. 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. [2005] 1 SLR(R) 0502 Chwee Kin Keong and others v Digilandmall.com Pte Certainty in commercial transactions should not be trifled with, as this will inevitably affect how commercial and business exchanges are respected and effected. 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. 33 See the Singapore Court of Appeal decision of Chwee Kin Keong v Digilandmall.com Pte Ltd[2005] 1 SLR 502 (noted by Yeo, TM ' Great Peace: a distant disturbance ' (2005) 121 Law Quarterly Review 393 Google Scholar; KFK Low 'Unilateral mistake at common law and in equity' [2005] Lloyd's Maritime and Commercial Law Quarterly 423; and PW . The common law has drawn the line in Bell v Lever Bros Ltd. Having noted all this, I am nevertheless inclined towards the views expressed in the Great Peace Shipping case for the reasons articulated by Lord PhillipsMR. 17 Having called the second and third plaintiffs at about 2.00am, the first plaintiff also sent them, via e-mail, a weblink of the relevant HP website pages. Added to his own purchases of 760 units, he was effectively responsible for the purchase of 1,090 laser printers. As most web merchants have automated software responses, they need to ensure that such automated responses correctly reflect their intentions from an objective perspective. An FAQ guide to electronic contracts in Singapore - Lexology There must be consensus ad idem. Voces del tesauro. A viewer from any part of the world may want to enter into a contract to purchase a product as advertised. 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. Rajah J.C. in the Singapore High Court in Chwee Kin Keong v. Digilandmall.com Pte. 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. June Proctor, 1997, p. 13. 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). LOW, Kelvin Fatt Kin. The rigour in limiting this scope is also critical to protect innocent third party rights that may have been acquired directly or indirectly. There cannot be any legitimate expectation of enforcement on the part of the non-mistaken party seeking to take advantage of appearances. Yet in other aspects, he could recollect, with crystal clear precision and clarity, details of what had transpired. He also claimed to have talked to buyers in the market about reselling the laser printers and that the failure to procure the units would tarnish his reputation. (c) the need to reach commercially sensible solutions while respecting traditional principles applicable to instances of genuine error or mistake. Chwee Kin Keong and Others v Digilandmall.com Pte Ltd [2005] SGCA 2 Civil Procedure Costs , Civil Procedure Pleadings , Contract Mistake Decision Date: 13 Jan 2005 . 10 News of the rather extraordinary laser printer pricing began to spread like wildfire within the local Internet community. They contended that the entire ICQ conversation, infused with such a jocular tone, should be disregarded. Kiat Boon, Daniel SENG - NUS Law To that extent, his evidence that he subsequently dismissed the notion altogether is unacceptable. 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. 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. Court name Singapore High Court. Scorpio: 13/01/20 01:42 I want at least one for personal use 2 would be good coz my gf needs one too any more than that would be a bonus ;-), Scorpio: 13/01/20 01:43 anyway, I dont mind buying over if you have frens who want to sell buy at twice the price!! 95 The known availability of stock could be an important distinguishing factor between a physical sale and an Internet transaction. 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. The unusual product description of 55 which the fourth plaintiff alone reluctantly acknowledged as weird and unusual would have been a red light signal that an error had occurred. He appears to have been in constant communication with the second plaintiff and to have received and read the mass e-mail from the first plaintiff after he placed his first purchase order. Indeed, in difficult cases, the courts in several common law jurisdictions have gone to extraordinary lengths to conjure up consideration. Singapore Law Blog Why? 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. This was also the practice in the trade. [emphasis added]. The defendant also sells HP products on its own website at http://www.digiland.com (the Digilandmall website). (PDF) Unilateral Mistake in Contract: Five Degrees of - ResearchGate What is urged is that, owing to a common error as to some fundamental fact, the agreement is robbed of all efficacy. I find it inconceivable, to say the least, that the fifth plaintiff would have placed an order for 100 laser printers without the conviction that it was in fact a current market model with a real and substantial resale value. 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. COURT. The relevant text reads: WHILE surfing the Net at about 2am on Monday, MrTan Wei Teck stumbled upon an offer he could not believe $66 for a Hewlett Packard laserjet printer that normally sells for $3,854 before GST. Copyright 2003 - 2023 - LawTeacher is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. [2006] SGHC 222 - eLitigation Others do not. 55 The fourth plaintiff is technologically savvy and runs an Internet business with the second plaintiff. The plaintiffs also assert in their submissions that if contracts are only upheld if parties acted honourably there would be very few contracts left standing in the commercial world. He claims visiting, 62 Like the second plaintiff, the fifth plaintiff played a pivotal role in the events leading to these proceedings. 12 The plaintiffs both collectively and individually maintained adamantly that while they thought that the price of $66 appeared to be a good deal they did not think that the website prices had been mistakenly placed or inserted. The quintessential approach of the law is to preserve rather than to undermine contracts. , In unilateral mistake, only one of the parties is mistaken. Homestead Assets Sdn Bhd v. Contramec . Abstract The decision of V.K. It takes the view that there is no jurisdiction in equity to rescind a contract that is valid at common law, on the basis of mistake. In the light of that consideration we can see no way that Solle v Butcher can stand with Bell v Lever Bros Ltd. 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. If the common law continues to take precedence, then an essential mistake would void a contract ab initio. 22 The exchange between the first plaintiff and Desmond provides an intimate and revealing insight into the first plaintiffs thought process at the material time; the exchange fluctuated between bantering on the one hand, to nothing short of the candid exchange of thoughts on the other, revealing that the first plaintiff was fully aware of the likely existence of an error in pricing. See now, also, 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. 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. The shopping cart website page carried the insertion call to enquire under the heading Availability of product. In Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd, the English Court of Appeal decided that Solle v Butcher was wrong to hold that there was an equitable doctrine of common mistakes. In such cases, it would be unconscionable to enforce the bargain and equity will set aside the contract. If coherence is to be restored to this area of our law, it can only be by declaring that there is no jurisdiction to grant rescission of a contract on the ground of common mistake where that contract is valid and enforceable on ordinary principles of contract law. That is sufficient in these circumstances. This is much closer to the truth than the picture he has tried to paint in these proceedings. 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 Chwee Kin Keong v. Digilandmall.com Pte Ltd, 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. What is urged is that, owing to a common error as to some fundamental fact, the agreement is robbed of all efficacy. Though the actual price of the laser printer was $3,854, the defendant had on 8January 2003 mistakenly posted the price at $66.00 on its websites. 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. Inflexible and mechanical rules lead to injustice. Please refer to the PDF copy for a print-friendly version. 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. In the Singapore context a similar approach has been adopted by the Court of Appeal in, 105 It is not only reasonable but right that the objective appearance of a contract should not operate in favour of a party who is aware, in the eyes of the law, of the true state of affairs when, for instance, there is real misapprehension on the part of the mistaken party and when the actual reality of the situation is starkly obvious. 44 He made his first purchase of ten laser printers at about 2.42am. 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. Singapore Court of Appeal. Theoretically the supply of information is limitless. PDF Case Note - School of Advanced Study A-Z of Cases | Carlil & Carbolic - Law Study Resources In such cases, where the purchaser has readily accessible means from the very same computer screen, to ascertain through a simple search whether a mistake has taken place, the onus could be upon him to exonerate himself of imputed knowledge of the mistake. The modern approach in contract law requires very little to find the existence of consideration. 27-30 January; 2-6, 9 February; 13 March; 12 April 2004 . 73 The sixth plaintiffs orders did not receive matching confirmations from the defendant as his e-mail box was full. 68 Yeow Kinn Oei is 29 years old and the brother of the third plaintiff. 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. He somewhat muddied the authority of his observations by apparently accepting in Gallie v Lee [1969] 2 Ch 17 at 33 (affirmed on appeal in Saunders v Anglia Building Society [1971] AC 1004) that in Cundy v Lindsay there was no contract at all. [The Myth of Mistake in the English Law of Contract (1954) 70LQR 385 at 396]. This price was much lower than the actual retail price, and had been posted on the defendant's website by mistake. The reason for this inconsistent conduct surfaced later. 2. Notwithstanding occasional failure, most e-mails arrive sooner rather than later. 155 The Internet has revolutionised commerce and radically altered the manner in which commercial interaction currently takes place. 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. 100 There is however another statute that ought to be taken into consideration in determining the appropriate default rule in e-commerce transactions. He also called the first plaintiff to see if the latter had managed to successfully complete his purchase. How do I Locate Case Law?: Case Names & Citations This was presumably to render the training more lifelike. It will firstly discuss the fact that such a tort Our academic writing and marking services can help you! He sought to amend his affidavit and testified that if the references in his affidavit implied the acknowledgement of a mistake, they were formulated not by him but by his previous solicitors and were incorrect.
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