JUDGMENT

Mohd. Yusoff Mohamed J:

The Basis of the Relationship between the plaintiffs and the defendants

A purchaser, Penghulu Francis Umpau wished to buy 2 lots of land, namely 1244 and 1248 from the Developers, Ang Construction Co., for purposes of building a house on it. The plaintiffs agreed to finance the purchase of the land and the construction of the house.

An Agreement setting out the arrangement between the 3 parties, the plaintiffs, the Developers and the Purchaser was prepared. It was prepared by the defendants' firm and is dated the 25 July 1966. The Developers signed the Agreement in the presence of an Advocate in the defendants' firm. The common seal of the plaintiffs was affixed in the presence of their Director and their Secretary.

By Clause 5 of the said Agreement as soon as the Developers obtained issued documents of titles to the two lots of land then:

(a) the Developers shall execute a memorandum of transfer of the said land to the Purchaser AND simultaneously

(b) the Purchaser shall execute a memorandum of charge on the said land in favour of the Financier (the plaintiffs) as security for the repayment of the loan of RM70,000 and for the interest on the said l