(delivering the Judgment of the Court): On March 11, 1986, in the High Court, Kuala Lumpur, the respondents/plaintiffs succeeded in their claim against the appellants /second defendants for breach of contract and obtained judgment for the sum of $90,838.85 as damages; and the sum of $27,480.00 as storage charges together with interest thereon at 8% per annum from the date of judgment to the date of realisation. Their claim against the first defendant was dismissed. The appellants were ordered to pay the taxed costs to the respondents and the first defendant.

The appellants being dissatisfied with the decision of the High Court filed notice of appeal on April 7, 1986. The appeal came before us for argument.

Before dealing with the relevant grounds of appeal, we would like to touch on the relevant facts.

On October 31, 1977, the respondents, a limitted company carrying on business inter alia as suppliers of Lesey clay and having its registered office in Kuala Lumpur entered into a written agreement with the first defendant, one Peter Chi Man Kwong, an accountant carrying on business in Singapore who acted in the capacity of receiver and manager of the property