Siti Norma Yaakob J:

On 10 May 1984, the applicants entered into a sale and purchase agreement, wherein they agreed to sell their freehold land held under Grant No. 8069, Lot 3308, Mukim of Kuala Lumpur, together with a single storey detached house to the respondent for a consideration of RM445,000. The respondent paid the initial deposit of RM45,450 and the balance of the purchase price was to be settled not later than 3 months from the date of the agreement from a loan to be obtained by the respondent and in the event of its default, the applicants were entitled to treat the agreement as being terminated and to forfeit the deposit paid to account.

The respondent failed to settle the balance of the purchase price on the due date and explains its failure to do so by alleging that the applicants had breached Clause 10 of the agreement and it had on 29 August 1984 informed the applicants that it was repudiating the agreement and demanded the refund of the deposit and other disbursements incurred. Clause 10 of the agreement contains a warranty or undertaking by the applicants that they have not been served with any notice of any intended acquisition of the land by any authority