To that extent, his evidence that he subsequently dismissed the notion altogether is unacceptable. They even discussed the possible scenario of the defendant not honouring the transactions. There are, however, other sound reasons to argue against such a rule in favour of the recipient rule. The other school of thought views the approach outlined earlier with considerable scepticism. 59 Upon duly accessing the HP website through the hyperlink sent to him by the second plaintiff, the fifth plaintiff ascertained that the laser printer was priced at $66. Slade, in a well reasoned article written not long after Solle v Butcher was decided, asserted: In general, it is submitted that there are no cases which support the proposition that in cases of unilateral mistake, V [the enforcing party] may obtain this relief where the contract is not void at law and there has been no misrepresentation. 80 Upon the conclusion of submissions, I directed counsel to appear before me. Unilateral Mistake at . 91 There is no real conundrum as to whether contractual principles apply to Internet contracts. They then argue that as equitable defences have not been pleaded, the court has no alternative but to allow the claim. 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. Be that as it may, the fifth plaintiff, soon after he received MsTohs research, shared the information with the second and third plaintiffs. Chwee Kin Keong decision - Chwee Kin Keong and Others v Digilandmall The bites, however, may taste quite different and cause different sensations. [emphasis added]. As part of its business, it operates a website owned by Hewlett Packard (HP) at, 16 When the first plaintiff eventually succeeded in accessing the HP website, he immediately placed an order for 100 laser printers at about, 17 Having called the second and third plaintiffs at about. 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. I must add that these were far from being ordinary printers for home use. 54 The fourth plaintiff admits that he had entertained the idea at the material time that the price posting could have been an error. 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 No rights can pass to third parties. 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. If the defendant were right, they maintain, uncertainty would prevail in the commercial world and more particularly in Internet transactions. 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. Do you have a 2:1 degree or higher? The Canadian and Australian cases have moved along with the eddies of unconscionability. It seems to me that he was trying to tailor his evidence to fit neatly within the legal parameters of the plaintiffs case. The recipient rule appears to be the logical default rule. 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. It appears there were a series of sms messages between them and at least a few telephone discussions while the purchases were being effected. It can however be observed that in mass mistake cases, even when there is no direct evidence as in these proceedings, the court could be prepared to pragmatically assume actual or deemed knowledge of the manifest mistake. Lord Griffiths in Ketteman v Hansel Properties Ltd [1987] AC 189 at 220 stated: [T]o allow an amendment before a trial begins is quite different from allowing it at the end of the trial to give an apparently unsuccessful defendant an opportunity to renew the fight on an entirely different defence. 120 The widening of jurisdiction to embrace a broad equitable jurisdiction could well encourage litigious behaviour and promote uncertainty. The question is what is capable of displacing that apparent agreement. Article24 of the Convention states: For the purposes of this Part of the Convention, an offer, declaration of acceptance or any other indication of intention reaches the addressee when it is made orally to him or delivered by any other means to him personally, to his place of business or mailing address or, if he does not have a place of business or mailing address, to his habitual residence. 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. The later the amendment, the greater the adverse consequences. Notwithstanding, the defendant does not take issue with this as the sixth plaintiffs orders were received and the appropriate automated responses generated. 94 Historically, the common law has recognised an anomaly in the contractual features pertaining to a display of goods for sale. "Unilateral Mistake in Contract: Five Degrees of Fusion of Common Law a 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. There were no such discussions with potential buyers. I granted leave to both parties to file applications to amend the pleadings. Because it was simply a matter of time before the error would inevitably be noticed and the pricing inevitably corrected. No harm trying right? (PDF) Unilateral Mistake in Contract: Five Degrees of - ResearchGate He opted to pay for all his purchases by cash on delivery. The recipient rule is therefore more convenient and relevant in the context of both instantaneous or near instantaneous communications. Cory had chosen this mode of communication; therefore he 64 The fifth plaintiff was vague and tentative in many crucial aspects of his evidence. The Vienna Sales Convention (the Convention) applies in Singapore as a consequence of the Sale of Goods (United Nations Convention) Act (Cap283A, 1996Rev Ed). He offered no plausible explanation for the series of orders which he placed while he was in communication with the other plaintiffs, other than stating audaciously that he had to buy a lot to sell a lot, to get a lot. Online Pricing Mistakes | Emerald Insight This provision acknowledges that the essential framework of an electronic contract needs to be considered in the usual manner; in other words, principles of contract formation, consideration, terms and conditions, choice of law and jurisdictional issues need to be examined. Desmond intimated that the defendant would give vouchers or special deals as a matter of equitable compensation should it not honour the purchase orders. 9 The defendants assertion that Samuel Teo had neither the authority nor the intention to make any alterations to the laser printers price is now accepted by the plaintiffs. I found their attempts to play down the impact of the statements which they had, to all intents and purposes, willingly and deliberately made earlier, unconvincing. The sixth plaintiff told his brother to order some for him, without specifying how many laser printers he wanted or how he intended to pay for the laser printers. Though he initially denied this in cross-examination, he had to accept this when confronted with his own e-mail as irrefutable evidence. 73 The sixth plaintiffs orders did not receive matching confirmations from the defendant as his e-mail box was full. The plaintiffs are, however, entitled to the cost of the amendments, in any event, which I fix at $1,000. 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. COURT. The second, third, fourth and sixth plaintiffs are the only individuals who ordered more than a hundred laser printers each. 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 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. He said that he wanted to be sure that the offer on the HP website was genuine. The most recent and authoritative pronouncement in this area (. 26 I respectfully agree with the reasoning of ShawJ in Can-Dive Services Ltd v Pacific Coast Energy Corp (1995), 21CLR(2d) 39 (BCSC), where he said at 69-70 that: While I agree with what Madam Justice Mclachlin said so far as it goes, I do not believe she intended to imply that there must be a conscious taking advantage by one party of the other in all cases. CHWEE KIN KEONG and Others v DIGILANDMALL.COM Pte Ltd (2004) 2 SLR 594. 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. High Court Suit No 202 of 2003. Rather they assist in explaining how the common law has incrementally and cautiously allowed and continues to mould exceptions to the application of the objective theory of contracts. The defendant, on the other hand, contends that the law should not penalise a party who has unwittingly and genuinely made a unilateral mistake which was known or ought to have been known by the plaintiffs. 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. There can be no other reasonable explanation. He commenced practice in 2000 and currently practices with the law firm representing the plaintiffs in this action. 4, 1971, p. 331. Whether the parties have reached agreement on the terms is not determined by evidence of the subjective intention of each party. 34 He also visited the Digilandmall website to familiarise himself with their standard terms and conditions. He is currently self-employed and is intimately involved in the multi-level marketing sales of aromatherapy products under the Bel-Air label. 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. 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 . Rules of court which are meant to facilitate the conduct of proceedings invariably encapsulate concepts of procedural fairplay. 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. After referring to a series of leading cases, including the often quoted decision of ThomsonJ in McMaster University v Wilchar Construction Ltd (1971), 22DLR(3d) 9 (Ont HCJ), Chief Justice McLachlin said at p37: One circumstance falling clearly within the equitable jurisdiction of the Court to relieve against mistake is that where one party, knowing of the others mistake as to the terms of an offer, remains silent and concludes a contract on the mistaken terms: Solle, supra; Belle River Community Arena v WJC Kaufman Co (1978), 20OR(2d) 447, 4 BLR 231, 87DLR(3d) 761 (CA). The defendant programmed the software. 67 MsToh subsequently did some research on how companies which had committed similar mistakes over the Internet handled the aftermath. Chwee KIN Keong AND Others v Digilandmall.COM PTE LTD [2004 ] SGHC 71 Normally, however, the task involves no more than an objective analysis of the words used by the parties. Needless to say, he could not satisfactorily explain why his previous solicitors had formed such a view when preparing his affidavit and why he had affirmed the same. 44 He made his first purchase of ten laser printers at about 2.42am. It can be persuasively argued that e-mails involving transactions embraced by the Convention are only effective on reaching the recipient. Desmond: 13/01/20 01:40 if any friend got extra printer u want? 13 The first plaintiff, Chwee Kin Keong, is 29 years old. 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. 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. June 16, 2022; Posted by why do chavs wear tracksuits; 16 . 117 It should be emphasised that this stream of authority is consistently recognised by all the major common law jurisdictions. [2006] SGHC 222 - eLitigation Who bears the risk of such mistakes? His Internet research alone would have confirmed that. 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. 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. Rules and case law pertaining to amendments are premised upon achieving even-handedness in the context of an adversarial system by: (a) ensuring that the parties apprise each other and the court of the essential facts that they intend to rely on in addressing the issues in controversy or dispute; (b) requiring that an amendment should be attended to in the usual course of events, at an early stage of the proceedings, to ensure that no surprise or prejudice is inflicted on or caused to opposing parties; (c) requiring careful consideration whether any amendments sought at a late stage of the proceedings will cause any prejudice to the opposing party. Has an agreement been reached or not? 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. To my mind, the confirmation through the subsequent searches that the actual price of the laser printer was, in fact, US$2,000 would, if anything, have affirmed his belief that an error had occurred. V K Rajah JC: Para continuar leyendo. 132 It can be seen from this brief excursus into the law of mistake that this is an abstruse area. 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. In the fifth plaintiffs affidavit evidence, he asserted emphatically and unequivocally that at no point did I ever think that the price of the printers were a mistake. The fifth plaintiff was also a member of this bridge group. The decision of the British Columbia Court of Appeal in, 25 The law of mistake was discussed in depth by McLachlinCJBC in. It should be noted that while the common law jurisdictions continue to wrestle over this vexed issue, most civil law jurisdictions lean towards the recipient rule. The case of Hartog v Colin & Shields [1939] 3All ER 566 is incontrovertibly the leading authority in this area. PDF Woo Kah Wai and another v Chew Ai Hua Sandra and another appeal Soon after, the second, third and fifth plaintiffs took their claims to the media. It would be fair to say that such a person should not have any legitimate expectation that the contract in question will be either respected or sanctioned by court. 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. 63 It is pertinent he too made web searches using the Google search engine. 20 Annexed to this e-mail was the first plaintiffs earlier mass e-mail. Media reports after the discovery of the mistake. The defendant has expressly pleaded unilateral mistake. His credibility on the material points was dubious, at best. 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.
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