Visu Sinnadurai J:

Introduction

[1] This Court is called upon to construe a document, commonly referred to amongst estate agents in this country as a memorandum of understanding. I am given to understand that the true legal nature and effect of such a document has not been determined by the Malaysian Courts in any earlier case.

[2] This so-called memorandum of understanding is a document usually prepared by an estate agent by way of a standard form contract and is executed by a potential purchaser on the one part, and by a vendor on the second part. On viewing a property which has been advertised for sale, and a purchaser in expressing an interest to purchase the property, estate agents who have the mandate of a vendor to sell the vendor's property, generally request a prospective purchaser to sign this document. Such was the position in the present case.

Facts

[3] In the main civil suit, the plaintiff (the purchaser) brought an action against the defendant, the vendor for specific performance of a contract for the sale and purchase of a house. Based on the so-called memorandum of understanding (MOU) mentioned above, the plaintiff claims that a legally binding contract came into