Facts.-

On 14th July 1925 C had entered into a contract with the plaintiff-respondent where he agreed to sell and the respondent agreed to purchase certain miri land situated at Haifa in Palestine. The purchase under the contract had not been completed at the death of C. The price fixed by the contract was £E 260 per dunum. £E.6,000 was paid on the signing of the contract, and the balance of the price £E.28,000 was to be paid at the transfer into the name of the respondent. The contract contained also the following clause :

"5. If the first Party commits breach of any terms of this contract, he shall return to the second party the £E.4,000 received by him and shall pay to him. £E.10,000 as liquidated damages and penalty for the non carrying out of this contract, and if the second party commits breach of any terms of this contract, he shall pay to the first party £E.10,000 as liquidated damages and penalty after deduction of the £E. 4,000 paid."

The prescribed period for the transfer after the payment of the price was postponed with the consent of both parties to 30th November 1927 and the heirs of C, whereby the respondent as he did not have the sum owing to the then present condition