JUDGMENT

Gopal Sri Ram JCA:

This appeal raises a short point which has arisen on numerous occasions and upon which there are several decisions of the highest judicial tribunal in this country. But for the very special circumstances of this case, to which we will refer in due course, we would have been disinclined to add to the volume of legal literature already in existence upon the subject.

The facts relevant to this appeal are as follows.

The appellant is the registered proprietor of two shophouses along Jalan Station, Ipoh. He wanted to sell them. He engaged the services of a firm of estate agents M/s. Muthu & Lee, to find a buyer. The asking price was RM450,000. In November 1989, the estate agents found a buyer in the person of the respondent who was prepared to pay that sum. They then communicated with the appellant's solicitors who, on 23 November 1989, wrote the following letter to M/s. Muthu & Lee:

We refer to the telephone conversation between your Mr. E.S. Muthu and our Miss J. Devadason of even date.

Your client's offer of RM450,000 for the purchase of the above-mentioned property is accepted on the condition that a 10% deposit is paid to us on 28 November 1989 by 12