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. While they did not invariably admit that their searches were made prior to each of the respective transactions, it was plain that they did not tell the whole truth about, 149 It is clear from the authorities reviewed that such a contract, if entered into by a party with actual or presumed knowledge of an error, is void from the outset. 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. 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. 41 The second plaintiff seems to have redefined the facts to achieve his objective in these proceedings. A viewer from any part of the world may want to enter into a contract to purchase a product as advertised. 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]. It does not purport to regulate e-commerce but attempts to facilitate the usage of e-commerce by equating the position of electronic records with that of written records, thus elevating the status of electronic signatures to that of legal signatures. Notwithstanding occasional failure, most e-mails arrive sooner rather than later. What is urged is that, owing to a common error as to some fundamental fact, the agreement is robbed of all efficacy. To confine this exception to instances of fraud would make the concept of unilateral mistake redundant. 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. - This is also the position as regards friends: see Coward v. MIB (1963). 36 The second plaintiff was the key person and pivotal in the entire chain of events. 86 In cases where the facts raised in the proposed amendments have been addressed during the evidence and submissions and, particularly, where the opposing side has also had an opportunity to address the very same points, there can hardly ever be any real prejudice. This new template was designed to facilitate instantaneous price changes allowing them to be simultaneously reflected in the relevant Internet web pages. It appears to suggest that even if an offer is snapped up, the contract is not void. 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. The neutral citation of the case Chwee Kin Keong and others v Digilandmall.com Pte Ltd is as follows: This citation tells us that this was the 71st case in 2004 decided in the Singapore High Court. Leave was also given to the plaintiffs to adduce further evidence, if they so desired. Not all one-sided transactions or bargains are improper. In any event, it does not appear that she disclosed the whole truth of what she knew. While this case needs to be treated with some caution, as it appears to integrate concepts of law and equity, I respectfully agree with the approach in so far as it deals with deemed knowledge. No rights can pass to third parties. Added to his own purchases of 760 units, he was effectively responsible for the purchase of 1,090 laser printers. 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. But there would have, at least, to be some real reason to suppose the existence of a mistake before it could be incumbent on one party to question whether another party meant what he or she said. 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. To that extent, his evidence that he subsequently dismissed the notion altogether is unacceptable. In his initial affidavit he admitted wondering whether the price was a mistake after his first order was placed. 140 The defendant has however properly asserted that there was a unilateral mistake that vitiated all the contracts. That is sufficient in these circumstances. The individualistic ethic seeks to maximise individual goals and the community ethic seeks to set norms for commercial morality and to ensure that fair dealing and community cohesiveness are observed and maintained. This is not a case about bargain hunting which is a time honoured and perfectly legitimate pursuit. - Rebutting presumption: "The question [whether or not there is a binding contract] must depend on the The e-mails sent at 2.34am were also captioned Go load it now! On the issue of his actual knowledge and communications with the other plaintiffs at the material time, I found his evidence unsatisfactory. The following excerpt is particularly significant and compelling: 23 The subsequent exchange further clarifies that the first plaintiff was fully conscious of the potential profit element arising from the purchase of a substantial number of the laser printers. Desmond: 13/01/20 01:44 if they dont honor it Scorpio: 13/01/20 01:45 sell me one lah name your price ;-) sue them lor , Desmond: 13/01/20 01:45 I think they will give vouchers or special deals. Mistakes are usually synonymous with the existence of carelessness on the part of the mistaken party. The decision of V.K. Case Summary He is 32 years old and conducts his own network marketing business. 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. 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. Having said that, this exception must always be prudently invoked and judiciously applied; the exiguous scope of this exception is necessary to give the commercial community confidence that commercial transactions will almost invariably be honoured when all the objective contractual indicia are satisfied. It has been pointed out that the pedigree of these decisions is dubious, to say the least (see [128] and [129] infra). 55 The fourth plaintiff is technologically savvy and runs an Internet business with the second plaintiff. Though both of them admit to having had discussions about the website terms and conditions governing the purchases, they deny that there was any discussion between them on even the possibility of an error having taken place. 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). Where common mistake is pleaded, the presence of agreement is admitted. She opined that situations where unilateral mistake had been considered were those involving fraud or a very high degree of misconduct. He also called the first plaintiff to see if the latter had managed to successfully complete his purchase. This could account for the substantial number of Canadian cases in this area of the law. Examples of such mistakes would include (a)human error (b)programming of software errors and (c)transmission problems in the communication systems. After further sms exchanges, the second plaintiff contacted the fifth plaintiff on his mobile phone, urging him to return home to access the e-mail message he had just sent. This constituted more than a quarter of the total number of laser printers ordered. It is not necessary to prove actual knowledge on the part of the non-mistaken party in order to ground relief, as in this context one is taken to have known what would have been obvious to a reasonable person in the light of the surrounding circumstances: Hartog v Colin and Shields [1939] AllER 566 (KBD); McMaster University; Stepps Investments, supra; Taylor, supra. Scorpio: 13/01/20 01:43 yeah man whats the original price? Neither party raised any objections. Having expressed my views on consideration, I should also add for good measure that, in any event, there is ample consideration. reference was made by the court to "fraud or a very high degree of misconduct" before the non- mistaken party could be . 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. Errors may incur wholly unexpected, and sometimes untoward, consequences as these proceedings so amply demonstrate. This judgment text has undergone conversion so that it is mobile and web-friendly. Alternatively, knowledge may be readily inferred from what would be regarded as commonly known or notorious facts in the context of the transaction. In some unusual circumstances where a unilateral mistake exists, the law can find a contract on terms intended by the mistaken party. Having noted all this, I am nevertheless inclined towards the views expressed in the, 131 In a number of cases, including the present, it may not really matter which view is preferred. hahaha means S$132, Desmond 13/01/20 01:43 even $500 is a steal. No harm trying right? In the light of that consideration we can see no way that Solle v Butcher can stand with Bell v Lever Bros Ltd. by the earlier decision of Chwee Kin Keong v Digilandmall.com [2005] 1 SLR(R) 502, where the Court of Appeal recognised the doctrine of unilateral mistake in equity, departing from the English position in Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd [2003] QB 679; [2002] 3 WLR 1617; [2002] 4 All ER 689. Desmond: 13/01/20 01:24 just ordered 3 colour lazer printer for S$66.00 each. Websites often provide a service where online purchases may be made. Certain Internet service providers provide the technology to inform a sender that a message has not been properly routed. It is an important subject for the future development of English contract law. 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. 21 The first plaintiff must have realised at the outset that he would have to explain with a certain measure of credibility the purport and significance of all his Internet communications between 1.00am and 3.00am on 13January 2003. 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 Any reasonable person, given the extent of the knowledge and information the plaintiffs were armed with, would have come to a similar conclusion. This view seems to suggest that principles of equity invariably provide an equally strong but more elastic second string to the bow. This thread helps to rationalise the development of the common law but ought not to be viewed as supporting the existence of a general test of commercial morality tantamount to the test of unconscionability invoked by equity. Typical transactions are usually but not invariably characterised by (a)indecent alacrity; and (b)behaviour that any fair-minded commercial person similarly circumstanced would regard as a patent affront to commercial fairplay or morality. Certainty in commercial transactions should not be trifled with, as this will inevitably affect how commercial and business exchanges are respected and effected. They assumed that to be the position. Ltd.1 has the makings of a student's classic for several reasons: it presents a textbook . They were selling a HP laser printer and an employee accidently made a mistake as to the price of the printer on their website. I am not prepared, after full consideration, to assume that the reporters misquoted the facts. The defendant programmed the software. Copyright 2003 - 2023 - LawTeacher is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Unlike instances of fraud, where it is said fraud unravels the existing contract, in instances of unilateral mistake, the very existence of the contract is negatived there is no consensus. Looking for a flexible role? 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. The contract stands according to the natural meaning of the words used. 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 Scorpio: 13/01/20 01:33 as many as I can! Indeed this appears to be the underlying rationale for the unique legal characteristics attributed to an invitation to treat; see Grainger & Son v Gough [1896] AC 325 at 333334, Esso Petroleum Ltd v Commissioners of Customs & Excise [1976] 1All ER 117 at 126. 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. . Date of Verdicts: 12 April 2004, 13 January 2005. It cannot also be seriously argued that there was no intention to enter into a legal relationship. Imagine the effect of this negative publicity on your future sales! 4 The defendant is a company that sells information technology (IT) related products over the Internet to consumers. 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. Yet in other aspects, he could recollect, with crystal clear precision and clarity, details of what had transpired. 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). 152 This view has also found support in the Singapore context. 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. 117 It should be emphasised that this stream of authority is consistently recognised by all the major common law jurisdictions. Promotions would be indicated by a P inside a yellow circle next to the product in question. Case law Chwee Kin Keong v Digilandmallcom Pte Ltd suggests that General Rule. Being fully conscious of the pivotal nature of this point, I have duly accorded particular attention to the evidence and credibility of each of the plaintiffs. 99 Like the somewhat arbitrary selection of the postal rule for ordinary mail, in the ultimate analysis, a default rule should be implemented for certainty, while accepting that such a rule should be applied flexibly to minimise unjustness. Samuel Teo had used all these notional numerals on the training template. A typical but not essential defining characteristic of conduct of this nature is the haste or urgency with which the non-mistaken party seeks to conclude a contract; the haste is induced by a latent anxiety that the mistaken party may learn of the error and as a result correct the error or change its mind about entering into the contract. 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. The defendant, Digilandmall.com Pte Ltd, were an online IT company that sold related software and hardware from Singapore. It was listed at the price of $66, when it was advertised on the official HP website for $3,854. How could one seek to calculate the profit margin before finding out the true market price of the laser printer? Notwithstanding, the defendant does not take issue with this as the sixth plaintiffs orders were received and the appropriate automated responses generated. 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. If this rule applies to international sales, is it sensible to have a different rule for domestic sales? 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. I was neither impressed nor convinced. This, in a nutshell, is the issue at the heart of these proceedings. 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. He admitted in cross-examination to being the lawyer for this group of people when they had questions like these in the present proceedings.