Prior to being self-employed, he was a corporate banker with Standard Chartered Bank, Singapore, for four years. 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. With reference to the judgement, the case explores pricing mistakes by online stores. It is pertinent to note that she placed orders for 32 laser printers including 20 units she ordered on behalf of her sister. 81 Plaintiffs counsel thereafter responded somewhat curiously. 75 Each of the automated confirmatory e-mail responses carried under Availability of product the notation call to enquire. The other school of thought views the approach outlined earlier with considerable scepticism. 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. 113 The English Court of Appeal in Commission for the New Towns v Cooper (Great Britain) Ltd [1995] Ch 259, a case of common mistake, imported the concept of Nelsonian knowledge and applied the framework of various categories of knowledge outlined by Peter GibsonJ in Baden v Societe Generale pour Favoriser le Developpement du Commerce et de lIndustrie en FranceSA [1993] 1 WLR 509. He was opportunistic in effecting his purchases, active in co-ordinating with the other plaintiffs on the eventful morning, and economical with the truth in his evidence. Rajah J.C. in the Singapore High Court in Chwee Kin Keong v. Digilandmall.com Pte. 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. [The Myth of Mistake in the English Law of Contract (1954) 70LQR 385 at 396]. After the defendant intimated that it would not be delivering the laser printer, he sent an e-mail excoriating it, asserting, I felt that I had done all that was conceivably within my means to ensure that the Price was. 30 Tan Wei Teck is 30 years old. Samuel Teo had used all these notional numerals on the training template. Desmond: 13/01/20 01:24 just ordered 3 colour lazer printer for S$66.00 each. 27-30 January; 2-6, 9 February; 13 March; 12 April 2004 . 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. There is therefore no pre-condition in law for a mistaken party to show an absence of carelessness to avail himself of this defence; the law precludes a person from seeking to gain an advantage improperly in such circumstances. There is no merit at all in this contention. Chwee Kin Keong v Digilandmall Pte Ltd - LawTeacher.net 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. In this case, there was no consensus ad idem or meeting of the minds between the parties, which meant that there could be no binding contract between them. He held that the Written Offer was accepted by the . The plaintiffs are, however, entitled to the cost of the amendments, in any event, which I fix at $1,000. Chwee Kin Keong Vs | PDF - Scribd It is set in the context of internet contracting. The appellants featured prominently because of the size of their orders. Their reference to arbitraging was a nebulous fig leaf designed to legitimise their conduct in a cloak of legal and commercial respectability. It can be persuasively argued that e-mails involving transactions embraced by the Convention are only effective on reaching the recipient. 65 He was particularly circumspect in recounting his communications with the second plaintiff. It stands to reason that if a party shuts its eyes to the obvious, the party is being neither honest nor reasonable, and ought to be affixed with knowledge. It was found that the plaintiffs must have known or realised that the offer did not express the true intention of the defendants. He appeared distinctly uncomfortable during several phases of his cross-examination and his answers on crucial points were evasive and often vague.. His evidence in relation to the level and nature of communications he had with the second and third plaintiffs on the morning in question lacked candour. He received this information through an sms message. Vincent. There is one important exception to this principle. A number of them have very close relationships, with some of them even sharing common business interests. V K Rajah JC. The text of the e-mail further reinforces the point. China-Singapore "One Belt One Road" International Business Cases Digest Part 1 -"" () 457-463 (2020, published by the Singapore and People's Republic of China Supreme Courts . In summary therefore, the equitable jurisdiction of the Courts to relieve against mistake in contract comprehends situations where one party, who knows or ought to know of anothers mistake in a fundamental term, remains silent and snaps at the offer, seeking to take advantage of the others mistake. In support of the latter it might be argued that unlike a posting, e-mail communication takes place in a relatively short time frame. 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. 150 The plaintiffs have contended that this court ought to follow the decision in Taylor v Johnson and hold that the contract is not void under common law but voidable only in equity. 18 He said he later conducted some searches using the Google search engine and ascertained that the laser printer could be sold at about US$1,300 in certain markets. 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 Bell v Lever in a naked attempt to achieve equitable justice in the face of the poverty of the common law. [2006] SGHC 222 - eLitigation 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. There is no doubt that the plaintiffs acted with indecent haste in the dead of the night in placing as many orders as each of them felt their financial resources credibly permitted them to do. 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). His own counsels description of him as careful and prudent only serves to corroborate this. Two issues had arisen. 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. It is not in dispute that the defendant made a genuine error. In terms of chronological sequence, the initial page accessed was the shopping cart, followed by checkout-order . The defendant, Digilandmall.com Pte Ltd, were an online IT company that sold related software and hardware from Singapore. PDF Case Note - School of Advanced Study This is much closer to the truth than the picture he has tried to paint in these proceedings. Notwithstanding some real differences with posting, it could be argued cogently that the postal rule should apply to e-mail acceptances; in other words, that the acceptance is made the instant the offer is sent. I have carefully considered the issue of costs and have noted that the defendant had, in the process of mounting a root and branch attack on the plaintiffs claim, pursued some unmeritorious contentions. 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. 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. (PDF) Intention to Create Legal Relations and the Reform of Contract Therefore, administrative law encompasses Is the Right to Privacy Adequately Protected? Quoine was operating as a market-maker on their own platform. 96 In an Internet sale, a prospective purchaser is not able to view the physical stock available. The argument is that, despite appearances, there is no real correspondence of offer and acceptance and that therefore the transaction must necessarily be void. He in effect forwarded the first plaintiffs e-mail to them. Case law chwee kin keong v digilandmallcom pte ltd. School Nanyang Technological University; Course Title ACC 1301; Uploaded By saint_huimin. This price was much lower than the actual retail price, and had been posted on the defendant's website by mistake. I do not accept that there were no discussions between them on the price posting being an error. 136 First, it was suggested that no contracts had been formed as all the contracts were subject to availability and that a failure to adhere to the directive call to enquire prevented the contracts from coming into existence. Notwithstanding, the defendant does not take issue with this as the sixth plaintiffs orders were received and the appropriate automated responses generated. He commenced practice in 2000 and currently practices with the law firm representing the plaintiffs in this action. 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. Case name. 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. It is simply inconceivable that when he entered into the purchase transaction, he did not know, or at the very least did not have a real and abiding belief that the price posting was an error. In the High Court, the learned judge ("the Judge") decided, in the main, in favour of the Purchaser. The law of mistake has generated its own genre of mistakes and obfuscation. 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. 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. Before retiring for the night, the first plaintiff had a further discussion with the second plaintiff on how to store the laser printers they had ordered. This was borne out by the case of Chwee Kin Keong and Others v. Digilandmall.com Pte Ltd [2004] SGHC 71 where an autogenerated email with "Successful Purchase Confirmation" in its subject . Often the essence of good business is the use of superior knowledge. 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. Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR 594; [2004] SGHC 71. 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. 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. They want Digiland to honour the deal or at least to compensate them. 52 He then called the second plaintiff on his handphone and informed him that he intended to purchase 50 laser printers. Why? Mutual promises, by all accounts, on the basis of existing case law, more than amply constitute consideration. In a, WHILE surfing the Net at about 2am on Monday, MrTan Wei Teck stumbled upon an offer, 82 The plaintiffs strenuously opposed the defendants amendments principally on the ground it was made at a late juncture. [emphasis added]. 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. 47 Not content with making his own purchases, he woke up his brother and transacted 330 units on his behalf. Though he initially denied this in cross-examination, he had to accept this when confronted with his own e-mail as irrefutable evidence. 72 To effect the purchase transactions on the respective websites, the plaintiffs had to navigate through several web pages. Unilateral mistake in contracts - L'Avocat Law The financial consequences could be considerable. Where common mistake is pleaded, the presence of agreement is admitted. 115 There is a distinct line of cases within the narrow confines of unilateral mistake where the common law has been resolutely disinclined to enforce apparent contracts. He appeared distinctly uncomfortable during several phases of his cross-examination and his answers on crucial points were evasive and often vague.. His evidence in relation to the level and nature of communications he had with the second and third plaintiffs on the morning in question lacked candour. Transactions over websites are almost invariably instantaneous and/or interactive. six plaintiffs ordered 1,606 printers. If an offeree understands an offer in accordance with its natural meaning and accepts it, the offeror cannot be heard to say that he intended the words of his offer to have a different meaning. 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. From time to time there will be cases where this is an overriding consideration. Certainty in commercial transactions should not be trifled with, as this will inevitably affect how commercial and business exchanges are respected and effected. The law ought to take a practical approach in dealing with such cases if it appears that by exercising reasonable care the true facts ought to be known. Case Note: Singapore | Digital Evidence and Electronic Signature Law Review This constituted more than a quarter of the total number of laser printers ordered. 96 In an Internet sale, a prospective purchaser is not able to view the physical stock available. [emphasis added]. Parties Chwee Kin Keong & Others v. Digilandmall.com Pte Ltd. Decision date 12/04/2004. He claims he then accessed the US HP website either through a Google web search engine or by abbreviating the url of the HP website. 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. PDF Blips And Blunders: The Law Concerning Mistakes Made In Electronic C {Q V The defendant is therefore entitled to recover in full its taxed costs from the plaintiffs. A contract will not be concluded unless the parties are agreed as to its material terms. The first and fifth appellants each ordered a hundred printers, while the other appellants ordered more than a hundred printers each. 79 The second, third and fifth plaintiffs tried their best to distance themselves from the quotes attributed to them. This could account for the substantial number of Canadian cases in this area of the law. The price of the laser printer, prior to 3.36pm on 8January 2003, was stipulated as $3,854 (exclusive of GST) on both the Digilandmall and HP websites (the websites), and as $3,448 on the Digiland commerce website. 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. Desmond: 13/01/20 01:41 u want it for profit or personal use? While commercial entities ought not to be given a licence to relax their vigilance, the policy considerations in refusing to enforce mistaken agreements militate against attaching undue weight to the carelessness involved in spawning the mistake. All previous discussions and negotiations between the parties proceeded on the basis of the price being fixed at so much per piece. 56 He vacillated throughout his evidence between a propensity to embellish his evidence on the one hand and to hold back on the other. In short, where does the justice reside? 46 He was therefore aware, even before he made his first purchase, that the actual price of the laser printer was in the region of US$2,000. CLARK, B. 39 The sequence of orders placed by the second plaintiff in the short space of an hour and a half deserves some mention. Chwee Kin Keong and Others v Digilandmall.com Pte Ltd [2004] 2 SLR 594; [2004] SGHC 71 Suit No: Suit 202/2003/E Decision Date: 12 Apr 2004 Court: High Court Coram: V K Rajah JC Counsel: Tan Sok Ling, Malcolm Tan and Mohan Das Vijayaratnam (Tan S L and Partners) for plaintiffs, Philip Fong Yeng Fatt and Doris Chia Ming Lai (Harry Elias 78 In a Channel NewsAsia report datelined 15January 2003, it was reported that: Two of the customers, Mark Yeow and Malcolm Tan, have already spoken to their lawyers. Case Note: Singapore - CORE 35 In addition to these conversations, the second plaintiff also accessed the Epinions website and sent a related e-mail to the first plaintiff. This may be too high a price to pay in this area of the law. The defendant also sells HP products on its own website at http://www.digiland.com (the Digilandmall website). Administrative Law in Common Law Countries. Chwee Kin Keong v Digilandmall.com (2005) - Singaporean case 3d printers sold for $66 instead of $3,800. 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. Keywords Contract Online Store Mistake Pricing Mistake Citation In any event, it does not appear that she disclosed the whole truth of what she knew. http://www.buy.hp.com.sg/hp/StandardProduct.cfm?prodid=HPC9960A. 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. He was also a partner in what is described as a printing business. The purpose of the amendments was merely to regularise the pleadings and indeed they went no further than to summarise evidence and submissions that had already been raised. 1.47K subscribers Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] Facts The defendant, Digilandmall.com Pte Ltd, were an online IT company that sold related software and hardware from. The Question about Validity of Postal Rule - lawteacher.net 87 It appeared to me that the extract from Singapore Civil Procedure 2003 relied on by the plaintiffs was blindly lifted from earlier editions of the English White Book without any consideration as to how it dovetails with the present procedural climate. The contract was held to be void because there was no consensus on the terms. This is approved in a Singaporean case, Chwee Kin Keong v Digilandmall.com Pte Ltd . So there is a contract and therefore the defendant is liable in breach of contract.