JUDGMENT

Chan Sek Keong J:

This appeal raised a number of issues relating to the admissibility in evidence of "without prejudice" negotiations between the parties and their agents. At the conclusion of the hearing on 14 May 1991, we dismissed the appeal of the defendant and said we would give our reasons later.

On 30 October 1985, the plaintiffs commenced this action against the defendant for damages for breach of contract. In the statement of claim, the plaintiffs have averred the following: that on or about 28 June 1983, the defendant agreed to buy from the plaintiffs 640,000 shares (the said shares) in SPP Ltd., which shares were listed on the Stock of Exchange of Singapore, at the total price of $2,278,400 (at $3.56 per share), and to complete the purchase by September 1983; that pending completion, the defendant should reimburse the interest accruing on the plaintiffs' and CBG's overdraft accounts with 3 banks, subject as from February 1984 to an overdraft limit of $2,278,400; that the defendant failed to complete the purchase by September 1983 but continued to pay the plaintiffs the said interest calculated as aforesaid until September 1984; that on 24 December 1984, the defe