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. 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. 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. 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 new template was designed to facilitate instantaneous price changes allowing them to be simultaneously reflected in the relevant Internet web pages. The most recent and authoritative pronouncement in this area (. When pressed as to whether he visited other websites, he said he could not confirm that one way or the other. Chwee Kin Keong and others v. Digilandmall.com Pte Ltd. [2004] SGHC 71. In Canada, the latter suffices. They were high-end commercial laser printers. Added to his own purchases of 760 units, he was effectively responsible for the purchase of 1,090 laser printers. Different protocols may result in messages arriving in an incomprehensible form. 30 Tan Wei Teck is 30 years old. The first issue dealt with references made by the plaintiffs to certain embargoed material. The other school of thought views the approach outlined earlier with considerable scepticism. Caveat emptor remains a cornerstone of the law of contract and business relationships. 132 It can be seen from this brief excursus into the law of mistake that this is an abstruse area. 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. In a Straits Times report dated 15January 2003 captioned $66 printer error angry customers seek lawyers help, it was reported that the second plaintiff, described as a network marketer had on 13January at about 2.00am stumbled upon a offer he could not believe $66 for a Hewlett Packard laserjet printer that normally sells for $3,854 before GST. This, by an uncanny coincidence, was the same person whom he had intended to consult in the resale of the laser printers a topic that he had discussed with the second plaintiff earlier that morning. The pleadings, in such instances, merely formalise what is already before the court. 100 There is however another statute that ought to be taken into consideration in determining the appropriate default rule in e-commerce transactions. It appears there were a series of sms messages between them and at least a few telephone discussions while the purchases were being effected. The ETA is essentially permissive. From time to time they communicate with each other via the Internet and the short messaging system (sms). 32 Satisfied with his enquiries in relation to the printer model, he returned to the HP website and placed an order for 100 laser printers at about 2.23am. This case is a paradigm example of an error on the human side. 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. Counsels approach is flawed. Not all one-sided transactions or bargains are improper. The sender will usually receive a prompt response. reference was made by the court to "fraud or a very high degree of misconduct" before the non- mistaken party could be . He is currently employed as an accountant in an accounting firm, Ernst & Young. I invited both parties to indicate if they wished to amend their pleadings. The rigour in limiting this scope is also critical to protect innocent third party rights that may have been acquired directly or indirectly. 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 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. 27-30 January; 2-6, 9 February; 13 March; 12 April 2004 . 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. 118 The Canadian courts have been the most active common law courts explicating and developing this area of the law. 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. In this case, Defendant was selling IT products over internet in Singapore. Indeed he had conduct of significant phases of these proceedings on behalf of the plaintiffs. 62 Like the second plaintiff, the fifth plaintiff played a pivotal role in the events leading to these proceedings. 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. 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. Clout issue 43. The issue could be critical where third party rights are in issue as in Shogun. Entores Ltd v Miles Far East Corp. [1955] 2 Q.B. The same view is echoed in Halsburys Laws of Singapore vol7 (Butterworths Asia, 2000) at [80.164]. 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. Others do not. 81 Plaintiffs counsel thereafter responded somewhat curiously. The second, third, fourth and sixth plaintiffs are the only individuals who ordered more than a hundred laser printers each. Kin Keong v Digilandmall.com Pte Ltd [2004 . In other words, he really wanted to ascertain the true price of the laser printer. 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 recipient rule is therefore more convenient and relevant in the context of both instantaneous or near instantaneous communications. However, not all principles will or can apply in the same manner that they apply to traditional paper-based and oral contracts. 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. 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 unconstrained exchange that followed between the two is both revealing and compelling. MrTan said: As long as we get out [sic] equitable compensation, we should be able to accept lesser terms, but thats just under consideration as well.. June Proctor, 1997, p. 13. A party may not snap at an obviously mistaken offer: McMaster. Delivery was merely a timing issue. In accordance with s15(1) of the ETA, acceptance would be effective the moment the offer enters that node of the network outside the control of the originator. 25 The mass e-mail at 2.58am is cursorily dismissed by counsel for the plaintiffs as poor use of language that ought not to be taken literally in light of the early hours of the morning. Market orders: order to be executed immediately at the best available price. The court held that the acceptance has been completed once it is posted although here, the defendants actually did not receive the letter before they sold it to someone else. It presents a textbook example of offer and acceptance. 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. Inflexible and mechanical rules lead to injustice. This is an area that needs to be rationalised in a coherent and structured manner. As most web merchants have automated software responses, they need to ensure that such automated responses correctly reflect their intentions from an objective perspective. 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. 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. 69 The sixth plaintiff was awakened by his brother, the third plaintiff, at about 3.00am. Given his professional and business background, he must have realised that the $66 price posting on the HP website was an error. The very foundations of predictability, certainty and efficacy, underpinning contractual dealings, will be undermined if the law and/or equity expands the scope of the mistake exception with alacrity or uncertainty. 2 Who is correct? Yong Pung HowCJ in, [T]he function of the court is to try as far as practical experience allows, to ensure that the, Tan Sok Ling, Malcolm Tan and Mohan Das Vijayaratnam (Tan S L and Partners) for plaintiffs; The E-Mail Acceptance Rule. It has been pointed out that the pedigree of these decisions is dubious, to say the least (see [128] and [129] infra). Thus, while the idea of snapping up may well apply in cases one side is aware of the other sides error, I do not think it can be applied literally in the constructive knowledge cases. He claimed he wanted to find out how much profit he could make. 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. There cannot be any legitimate expectation of enforcement on the part of the non-mistaken party seeking to take advantage of appearances. They want Digiland to honour the deal or at least to compensate them. 91 There is no real conundrum as to whether contractual principles apply to Internet contracts. In addition, he despatched e-mails to the fourth and fifth plaintiffs attaching a hyperlink to the HP website. Free resources to assist you with your legal studies! 34 He also visited the Digilandmall website to familiarise himself with their standard terms and conditions. This was also the practice in the trade. 140 The defendant has however properly asserted that there was a unilateral mistake that vitiated all the contracts. 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. The issue in this case was whether the pricing was a mistake and if the contract would be fulfilled. The contract was held to be void because there was no consensus on the terms. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. 131 In a number of cases, including the present, it may not really matter which view is preferred. A prospective purchaser is entitled to rely on the terms of the web advertisement. 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. 51 The fourth plaintiff received a phone call from the second plaintiff at about 2.00am, informing him that there was money to be made through the purchase of laser printers. 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 was aware that the laser printers were targeted for business use. The shopping cart website page carried the insertion call to enquire under the heading Availability of product. I cannot accept that. The court found that parties when . The elements of an offer and acceptance are, 139 Next, the defendant contends that no consideration passed from the plaintiffs to them. Desmond: 13/01/20 01:24 just ordered 3 colour lazer printer for S$66.00 each. Mistakes that negative consent do not inexorably result in contracts being declared void. I granted leave to both parties to file applications to amend the pleadings. They even discussed the possible scenario of the defendant not honouring the transactions. He commenced practice in 2000 and currently practices with the law firm representing the plaintiffs in this action. The brief will discuss whether a tort of invasion of privacy should be developed by the courts. He seemed to suggest that in a number of cases going as far back as, He somewhat muddied the authority of his observations by apparently accepting in, 126 The Australian courts appear to have relied on the views of Lord DenningMR in, 127 The attempt to conflate the concept of common law mistake and the equitable jurisdiction over mistake is understandable but highly controversial. 48 The third plaintiff annexed to his affidavit the transcript of the Channel NewsAsia report where he was quoted. 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 reach of and potential response(s) to such an advertisement are however radically different. He graduated with an accounting degree from NTU. 24 While the first plaintiff conceded that he had communicated to the second and third plaintiffs the existence of a good deal, he maintained he did not discuss the possibility of the pricing being a mistake. This was summarily resolved. 7191 RSS High Court Expand/Collapse. 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, 52 He then called the second plaintiff on his handphone and informed him that he intended to purchase 50 laser printers. This is an inane argument. He holds an accounting degree from NTU. 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. It appears to suggest that even if an offer is snapped up, the contract is not void. The knowledge that the offer is not meant according to its literal terms simply displaces the objective theory of contract. Imagine the effect of this negative publicity on your future sales! chwee kin keong v digilandmall high court. The CISG has currently been adopted by 95 Contracting States world-wide. Quoine was operating as a market-maker on their own platform. 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. 44 He made his first purchase of ten laser printers at about 2.42am. It can be noted, however, that while s15 of the ETA appears to be inclined in favour of the receipt rule, commentaries indicate that it is not intended to affect substantive law. This is a disingenuous contention that desperately attempts to palliate their conduct in the subject transactions. He had left everything to his brother. The financial consequences could be considerable. If the defendant were right, they maintain, uncertainty would prevail in the commercial world and more particularly in Internet transactions. 121 While my views here are not central to my decision, the plaintiffs have adverted to this relationship in a misguided attempt to derail the defence on an arid pleading technicality. In effect the Internet conveniently integrates into a single screen traditional advertising, catalogues, shop displays/windows and physical shopping. Where either mutual or unilateral mistake is pleaded, the very existence of agreement is denied. 125 The principal source of this view has been Lord DenningMR. The contract stands according to the natural meaning of the words used. (See for example the approach in, 142 The plaintiffs were bound by personal relationships as well as past and present common commercial interests. The issue could be critical where third party rights are in issue as in. 109 This cautious statement by Chitty needs to be carefully reconsidered in the context of recent developments in this area of law. 61 The fifth plaintiff placed an order for 100 laser printers at about 3.51am. This constituted more than a quarter of the total number of laser printers ordered. Digilandmall.com Pte Ltd. 70 The third plaintiff proceeded to place orders on behalf of the sixth plaintiff on the HP website. 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. 95 The known availability of stock could be an important distinguishing factor between a physical sale and an Internet transaction. The defendant even had its terms and conditions posted on its website. Chwee Kin Keong and Others v Digilandmall.com Pte Ltd, Whether amendment of particulars of pleadings at conclusion of submissions allowed, Facts raised in proposed amendments addressed during trial and submissions, Whether promise by buyer to pay for goods, in exchange for delivery of goods, constituted sufficient consideration, Electronic Transactions Act (Cap 88, 1999 Rev Ed), Whether automated e-mail responses from seller amounted to acceptance of buyer's offer, Seller's unilateral mistake as to price of goods posted on website, Whether online buyer entitled to enforce contract against seller, 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. 56 He vacillated throughout his evidence between a propensity to embellish his evidence on the one hand and to hold back on the other. 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. 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. 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. High Court Suit No 202 of 2003. There cannot be any legitimate expectation of enforcement on the part of the non-mistaken party seeking to take advantage of appearances.