JUDGMENTBY: SYED AGIL BARAKBAH J

(delivering the Judgment of the Court): This is an appeal against the decision of Mohamed Yusoff, J. in the High Court, Kuching, delivered on June 7, 1983 giving judgment for the Respondents/Plaintiffs for loss of money lent and awarding damages in the sum of $ 136,898.12 made up of $ 66,900/- being principal sum lent plus interest at 8% per mensem as from September 30, 1977, interest on $ 66,900/- at 8% per mensem from October 1, 1977, and from date of judgment to date of settlement and costs.

The Appellants are a firm of Advocates and Solicitors having their registered office in Kuching and the Respondents are a finance corporation having their registered office in the same town.

The Respondents claim in the court below was for damages for loss and expenses caused by the negligence and breach of contract of the Appellants as the Respondents solicitors/advocates in failing to act in accordance with the assurance given by the Appellants to the Respondents in a letter dated August 15, 1966. (AB12).

Facts

It is common ground that in the latter part of 1966, Penghulu Francis Umpau (the Purchaser) wanted to build a dwelling house and decided to buy two lots of land Nos. 1244 and 1248 Block 10 Kuching Town Land District (the said land) from Messrs. Ong Construction Company (the Developers). The Respondents agreed to lend him a sum of $ 70,000/- for the purpose on condition that the said land would be charged to them. At the Respondents request the Appellants prepared an agreement relating to the proposed loan in which the Respondents referred to as the Financier, the Developers and the Purchaser were parties. The agreement was executed on July 25, 1966 and contained inter alia the following express terms:--

"2. The Developers shall build on the said land a dwelling house

according to the drawing and plan prepared by the Purchaser ...

3. The price of the said land and the completed dwelling house shall

be $ 62,000.00, payment of which shall be in accordance with the

Schedule of Payment as hereinafter stated.

4. The Financier shall lend the Purchaser a sum of $ 70,000.00

(Dollars Seventy thousand only) of which a sum of $ 62,000.00

shall be assigned by the Purchaser to the Developers and the

Financier shall release the same to the Developers bankers the

Bian Chiang Bank Ltd. from time to time according to the said

Schedule of Payment. The said loan shall bear an interest of 0.8%

per mensem and repayable by the Purchaser within 20 years that is

to say on or before July 25, 1986.

5. As soon as the Developers shall have obtained the issue documents

of title to the said land the Developers shall execute a

memorandum of transfer of the said land to the Purchaser and

simultaneous therewith the Purchaser shall execute a memorandum

of charge on the said land in favour of the Financier as security

for the repayment of the said loan of $ 70,000.00 and for the

said interest thereon. For bringing into effect of the above, the

Financier shall secure for the Developers a discharge of charge

created by the Developers in favour of Bian Chiang Bank Ltd.

Provided that the moneys payable under the Schedule of Payment

shall be paid to the said Bian Chiang Bank Ltd. as creditors of

the Developers."

Thereafter the Appellants had the agreement registered in the Registrar-General Registry at Kuching on August 15, 1966 and wrote to the Respondents enclosing a registered copy of the same. The letter and the agreement are the documents referred to at the trial and are therefore of vital importance in deciding the central issue involved. The letter (AB12) states as follows:--

" Loan to Penghulu Francis Umpau