Mohd Ghazali Yusoff JCA:

Background

On 12 November 1971, the appellant (the plaintiff in the court below) as vendor entered into a sale and purchase agreement (hereafter referred to as "the agreement") over two pieces of land with one Teo Bak Sang as purchaser (hereafter referred to as "the purchaser"). The first piece of land measuring 36 acres was known as Geran No. 13267, Lot 1557, Mukim Assam Kumbang, Daerah Larut dan Matang, Perak. The second piece of land measuring 16 acres 0 roods and 15 poles was known as Sijil Hakmilik 1113, Lot 129 (now known as Geran No. 9318) (hereafter referred to as "Lot 129"). The subject of the dispute revolves around Lot 129 only. The terms of the agreement included the following:

(a) that the appellant shall sell the two pieces of land to the purchaser as separate and complete building lots at a price of RM1,700 per lot in four phases of which 114 building lots are in Lot 129 (cl. 4);

(b) that 8 completed building lots (of which 2 building lots are in Lot 129) and the building lots which are outside the boundaries of the two pieces of land shall be excluded from the sale and remain the property of the appellant (cl. 6);

(c) that the remai