[1] This case deals with the issue of whether an exclusion clause in an agreement entered into between two parties, a house buyer and a bank may be struck out by the provisions of s 29 of the Contracts Act 1950 .

Salient Facts

[2] The parties in this appeal will be referred to as they were in the High Court.

[3] The plaintiffs are husband and wife. They are foreigners and living in the United Kingdom. To finance the purchase of a property, they applied for and was granted a term loan facility of RM715,487.00 by the defendant bank. The loan was provided under the Housing/Shop house Loan Agreement dated 22 April 2008 (Loan Agreement). The property purchased was still under construction and payment was to be made progressively against the certificate of completion issued by the architect at each progress billing. The defendant, under the Loan Agreement is obligated to make direct payment on a progressive basis to the developer on behalf of the plaintiffs, whenever such sums become due for payment.

[4] On or about 12 March 2014, the developer sent an Invoice No: IV000003408 which contained an architect's certificate dated 28 February 2014 and sought payment of RM25,557.12. The notice was