chwee kin keong v digilandmall high courtchwee kin keong v digilandmall high court

Not all one-sided transactions or bargains are improper. The jurisdiction asserted in the former case has not developed. It seems to me that he was trying to tailor his evidence to fit neatly within the legal parameters of the plaintiffs case. Prejudice is to be viewed broadly to encompass any injustice and embraces both procedural and substantive notions; (d) recognising that while a costs award against the party seeking late amendments can frequently alleviate any inconvenience caused, this may not always be appropriate; (e) taking into account policy considerations that require finality in proceedings and proper time management of the courts resources and scheduling. Voces del tesauro. He appeared to be consummately familiar with Internet practices and was forced to concede that he thought it was weird and unusual when he saw the number 55 on the relevant webpages in place of the actual product description. He is described by his counsel in submissions as a prudent and careful person. The transcript states that the third and the fifth plaintiffs saw a great opportunity and grabbed it. 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. In effect the Internet conveniently integrates into a single screen traditional advertising, catalogues, shop displays/windows and physical shopping. The Canadian and Australian cases have moved along with the eddies of unconscionability. Thus, 119 It is apparent from this overview that the Canadian courts have integrated through their equitable jurisdiction the concept of common law mistake within the rubric of unconscionability. 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. They have taken into account both the English and Australian authorities in distilling the jurisprudence in this area. He said he had by then discovered from his Internet searches that the price of the laser printer was in the region of $3,000. chwee kin keong v digilandmall high court. 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. The fact that the acceptance was automatically generated by a computer software cannot in any manner exonerate the defendant from responsibility. In his initial affidavit he admitted wondering whether the price was a mistake after his first order was placed. 106 In the Singapore context, the first port of call when confronted with issues of contract law is inevitably Professor Andrew Phangs treatise on Cheshire, Fifoot and Furmstons Law of Contract (2nd Singapore and Malaysian Ed, 1998). In such cases, it would be unconscionable to enforce the bargain and equity will set aside the contract. I invited both parties to indicate if they wished to amend their pleadings. Ltd. Yeo Tiong Min* I. u think this is the 1970s?? 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. There can be no other reasonable explanation. He opted to pay for all his purchases by cash on delivery. As this is a critical issue, it is imperative that each of their positions be carefully evaluated. Document Citado por Relacionados. Although a mistaken party will not often be able to discharge the onus of showing that the other party knew or must have known that he or she intended terms different from the terms of the offer or acceptance, it is not a necessary element that the party seeking to enforce the contract has actively contributed to the others mistake. Decisions cannot be reconciled and expressions, terminology and phraseology in different decisions mean different things to different courts and even judges within the same judicial systems. http://www.epinions.com/HP_Color_LaserJet_4600_Series_Printer_Printers. 89 In the circumstances, I had little hesitation in allowing the amendments sought by the defendant. Landmark decision on unilateral mistake of fact in respect of the price of product listed on an online mall and the purchases made thereon . What is urged is that, owing to a common error as to some fundamental fact, the agreement is robbed of all efficacy. The first plaintiff introduced him to the other plaintiffs. Similar works. It is an important subject for the future development of English contract law. Altogether different considerations may arise if a party, at a late stage, seeks through an amendment to adduce further evidence to support that same amendment. 83 The defendant maintained that there was no element of surprise and/or prejudice arising from the amendments. Do you have a 2:1 degree or higher? It is essential that the law be perceived as embodying rationality and fairness while respecting the commercial imperative of certainty. The contract was held to be void because there was no consensus on the terms. The Instantaneous Transmission of Acceptances. Chwee Kin Keong and others v Digilandmall.com Pte Ltd [2005] 1 SLR(R) 502; [2005] SGCA 2. Desmond: 13/01/20 01:47 u make me greedy, Scorpio: 13/01/20 01:47 ok lor if you insist . 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. 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 particular class of case which illustrates unilateral mistake as to the terms intended, known to the other party, is that in which an offer which would be very advantageous to the offeree is snapped up by the offeree. Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR 594; [2004] SGHC 71. No cash had been collected. 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!! 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. This has clearly caused much confusion in the common law jurisdictions. They are not mechanical rules to be applied in a vacuum, devoid of a contextual setting. 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. This gives their courts a broad and elastic jurisdiction to deal with commercially inappropriate behaviour. The elements of an offer and acceptance are, 139 Next, the defendant contends that no consideration passed from the plaintiffs to them. 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. 124 A number of decisions over the last five decades emanating from several common law jurisdictions even go so far as to suggest that with the integration of the courts of common law and equity, equitable principles now hold sway and that earlier common law decisions need reinterpretation. Ltd.1 has the makings of a student's classic for several reasons: it presents a textbook . 14 The first, second and fourth plaintiffs became acquainted with each other when they studied at the Nanyang Technological University (NTU). 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 31 He admitted receiving a call from the first plaintiff at about 2.00am but claimed the first plaintiff merely apprised him of a good deal. - This is also the position as regards friends: see Coward v. MIB (1963). He offered to buy a laser printer from Desmond at double the price, that is $132. In addition, he despatched e-mails to the fourth and fifth plaintiffs attaching a hyperlink to the HP website. The reason for this inconsistent conduct surfaced later. 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. This assertion is patently untrue. Olley v Marlborough Court [1949] 1 KB 532 Omnium D'Enterprises v . He is currently self-employed and is intimately involved in the multi-level marketing sales of aromatherapy products under the Bel-Air label. Lord Griffiths in, 87 It appeared to me that the extract from, 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 (, 95 The known availability of stock could be an important distinguishing factor between a physical sale and an Internet transaction. Abstract The decision of V.K. In addition, Tan Cheng Peng, the girlfriend and business associate of the third plaintiff, filed an affidavit detailing her communications with him. Rules of court which are meant to facilitate the conduct of proceedings invariably encapsulate concepts of procedural fairplay. 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]. There is often, but not inexorably, a co-relationship between the timing when the amendment is sought and the adverse consequences for the other party. Rajah J.C. in the Singapore High Court in Chwee Kin Keong v. Digilandmall.com Pte. He in effect forwarded the first plaintiffs e-mail to them. Unilateral Mistake at . 52 He then called the second plaintiff on his handphone and informed him that he intended to purchase 50 laser printers. Merchants may find their contracts formed in foreign jurisdictions and therefore subject to foreign laws. It was found that the plaintiffs must have known or realised that the offer did not express the true intention of the defendants. This can result from human interphasing, machine error or a combination of such factors. 122 For now it appears that a mistaken party can have two bites at the cherry. 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. Here are some examples of case citations for other jurisdictions. Clout issue 43. 98 Once an offer is sent over the Internet, the sender loses control over the route and delivery time of the message. Media reports after the discovery of the mistake. Rajah J.C. in the Singapore High Court in Chwee Kin Keong v. Digilandmall.com Pte. See now, also, The sixth plaintiff is precluded from asserting his ignorance. 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. That said, it also offers new avenues of evidential proof offering intimate insights into realtime thought processes and reactions. 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. . 134 It is not really in issue that contracts can be effectively concluded over the Internet and that programmed computers sending out automated responses can bind the sender. 45 The most telling aspect of the third plaintiffs evidence is his admission that he made Internet searches relating to the pricing of the laser printer, immediately after he was contacted by the first plaintiff. The contract stands according to the natural meaning of the words used. 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. 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. 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 AND Others v Digilandmall.COM PTE LTD [2004 ] SGHC 71 paginator.book page 594 tuesday, november 2009 7:05 am 594 singapore law reports (reissue . To assert that as a rule, leave to amend particulars will be refused, is both illogical and incorrect. Part of the training module included hands-on training with a new template for a Price Mass Upload function. Any reasonable person, given the extent of the knowledge and information the plaintiffs were armed with, would have come to a similar conclusion. He was also involved in initiating the Channel NewsAsia report (see [78] and [79] infra). 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. 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 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. 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. 91 There is no real conundrum as to whether contractual principles apply to Internet contracts. For example, in the Singapore High Court decision of Chwee Kin Keong v Digilandmall.com Pte Ltd [2004] 2 SLR 594 ("Digilandmall"), affirmed on appeal in Chwee Kin Keong v Digilandmall.com Pte Ltd [2005] 1 SLR 502 without considering this particular issue, V K Rajah JC (as he then was) observed, as follows (at [139]): 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. He is 32 years old and conducts his own network marketing business. Chwee Kin Keong and Others v Digilandmall.com Pte Ltd [2005] SGCA 2 Civil Procedure - Costs - Principles - Respondent failing in every aspect of defence except on issue of unilateral mistake - Trial judge awarding full costs to respondent - Whether respondent entitled to full costs 2 Who is correct? A contract will not be concluded unless the parties are agreed as to its material terms. A court will not enforce the plaintiffs purported contracts even if they are not void. 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). v . It has been a fertile source of academic debate, but in practice it has given rise to a handful of cases that have merely emphasised the confusion of this area of our jurisprudence. If there appears to be no reasonable explanation for an absurd price discrepancy, it is axiomatic that any hasty conduct, such as the plaintiffs, in snapping up products, should be punctiliously scrutinised and dissected. LOW, Kelvin Fatt Kin. Two issues had arisen. The first and fifth plaintiffs ordered exactly a hundred laser printers each. A number of them have very close relationships, with some of them even sharing common business interests. I do not accept that there were no discussions between them on the price posting being an error. Delivery was merely a timing issue. 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. Users may find that it may not be as forgiving as more traditional methods of communications. 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. 151 The claims by the plaintiffs are audacious, opportunistic and contrived. 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. 69 The sixth plaintiff was awakened by his brother, the third plaintiff, at about 3.00am. 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. He worked in an accounting firm, Ernst and Young, for three years. 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. Claiming he was in a light-hearted kind of mood during his ICQ (acronym for I-Seek-You) conversation with Desmond, he insisted that this conversation should be taken neither seriously nor literally. In doing so, they appear to have also conflated equitable and common law concepts. Upon accessing the Digilandmall website and confirming that the printer was offered there at $66 as well, he placed a further order for 25 laser printers through that website at about 3.29am. 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. 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. The case of Chwee Kin Keong & Ors v Digilandmall.com Pte Ltd [2004] SGHC 71, and the decision by VK Rajah JC, has received much public attention. 10 News of the rather extraordinary laser printer pricing began to spread like wildfire within the local Internet community. The terms of the offer are clear and unambiguous and the offeree accepts the offer according to its true sense, but it must have been obvious (and known by the offeree) that the offeror did not intend to make an offer in those terms. This case is a paradigm example of an error on the human side. Daniel was previously a partner and head of the technology practice at Messrs Rajah & Tann. Mutual promises, by all accounts, on the basis of existing case law, more than amply constitute consideration. His communications with the fifth plaintiff, a lawyer, on the efficacy of the terms and conditions also lead to the ineluctable conclusion that he harboured anxieties whether this astoundingly good deal would be honoured when the error was discovered. Where either mutual or unilateral mistake is pleaded, the very existence of agreement is denied. Looking for a flexible role? The shopping cart website page carried the insertion call to enquire under the heading Availability of product. They are not entitled to the costs of the subsequent brief hearing, for reasons I now deal with summarily. Desmond: 13/01/20 01:41 u want it for profit or personal use? - Rebutting presumption: "The question [whether or not there is a binding contract] must depend on the 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. I reject this. Between 3.13am and 4.00am the second plaintiff revisited the website four times placing four further orders for 20 laser printers each time. Counsel however contends that even if this e-mail were to be read literally, this should not affect the first plaintiffs own purchase that had taken place an hour earlier. 97 Different rules may apply to e-mail transactions and worldwide web transactions. 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. In New Zealand, the legislature enacted the Contractual Mistake Act 1977. 34 He also visited the Digilandmall website to familiarise himself with their standard terms and conditions. Before dealing with the point of real substance, it is appropriate to briefly deal with two of the less meritorious contentions advanced. Indeed, upon re-examination, he attempted to distance himself from the portion of his affidavit suggesting that the possibility of a genuine mistake had crossed his mind after the first transaction. 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. If this rule applies to international sales, is it sensible to have a different rule for domestic sales? COOTE, B. 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. The defendant is therefore entitled to recover in full its taxed costs from the plaintiffs.

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