Azmi LP:

This is an appeal against the judgment of the High Court at Malacca.

On 10 February 1965 the defendants undertook to construct immediately two buildings for the plaintiff for the sum of $26,000 on plaintiff's land at Klebang Kechil, Malacca and at the same time the plaintiff paid the defendants $5,000 as an "earnest deposit". A few days later the defendants discovered that owing to the encroachment of a neighbour's house into the lot it was not possible to construct the buildings according to the plan supplied by the plaintiff. In the meantime the defendants had already extended and strengthened an existing bridge on the land for transport of materials by lorries and also built a storehouse. The defendants informed the plaintiff of the obstruction. The plaintiff suggested the defendants proceed to construct one building only first but this the defendants refused to do. The defendants suggested alteration in the plan but this the plaintiff declined to do. A lot of correspondence passed between them through their respective solicitors. By a letter dated 7 July 1965 the plaintiff suggested that the defendants should treat the agreement as no longer enforceable subje