Gill J:

The plaintiffs are the sole distributors of the Japanese cars "Nissan" and "Datsun" for Malaya and Singapore. In November, 1962 they appointed the defendant's son named Yang Pin Joo as an authorized dealer for such cars for Penang and Butterworth where he carried on business under the style of Summit Motors. To begin with, the plaintiffs allowed Yang Pin Joo credit facilities to the extent of $26,000 on the understanding that payment for all cars supplied to him was to be made within two months. Such credit facilities were extended to $52,000 in July 1963.

By November 1963 Yang Pin Joo had greatly exceeded the limit of his credit facilities and he owed the plaintiffs about $123,000. The plaintiffs became anxious and sent two of their representatives to Penang to discuss matters with him. After the return of their representatives from Penang the plaintiffs wrote to Yang Pin Joo their letter dated 22 November 1963 in which they mentioned the suggestion which had been made in the course of the discussions about the possibility of their increasing the credit facilities to $150,000 and the period of payment to three months, provided such credit facilities were guarante