JUDGMENT

Hashim Yeop A Sani J:

The dispute in this case centres around a written option to purchase a piece of land given by the first defendant on his behalf and also on behalf of the second defendant (by a power of attorney) to one Mdm Kong Yoke Sam. Copies of this option are at pp. 6 and 7 of the Agreed Bundle. The option was executed in the office of PW1, a practising lawyer, sometime towards the end of 1973. The date on which the option was executed and the date on which the option was to expire were among the issues in dispute.

Due to the complexity of the background to this case it is essential that a summary of the facts that would seem to have been established or admitted is set out first. The land in question is a piece of land held under and comprised in Surat Hakmilek Sementara No. HS (D) KA 691/73 for Lot No. 66133 in the Mukim of Ulu Kinta comprising an area of 2,108 acres approximately. At all material times the registered owners of this land were the first and second defendants. On 16 October 1972 an agreement was executed between the defendants and one Loong Koi alias Loong Khui wherein it was agreed between them that the defendants would sell to Loong Koi the said land at the agreed price of $36,000. A copy of this agreement is at page 1 of the Agreed Bundle. This agreement will be referred to as the "agreement" in this judgment. Under the agreement a sum of $2,000 was paid to defendants by way of deposit by the intended purchaser and the balance of $34,000 would be paid after payment of dues to the Collector of Land Revenue and upon execution of a valid and registrable transfer in respect of the land in favour of Loong Koi or his nominee or nominees free from all encumbrances. Apparently there was no progress on the agreement until 9 November 1973 when PW1, as solicitors to Loong Koi wrote to the first defendant stating that an amount of $24,824.70 had actually been expended by Loong Koi. A copy of this letter is at p. 5 of the Agreed Bundle. On 8 December 1973 PW1 again as solicitors to Loong Koi wrote to first defendant stating that Loong Koi had instructed for the settlement of the amount of $24,824.70 from the first defendant within seven days from the date thereof. A copy of this letter is at page 8 of the Agreed Bundle. On 18 December 1973 PW1 again wrote to first defendant stating that since the first defendant had failed to comply with the previous letter demanding settlement of the sum, Loong Koi had rescinded and revoked the said letters and thereby given notice that he wished to comp lete the agreement. This letter also required the first defendant to obtain permission from the Mentri Besar for approval of the transfer in accordance with the express condition in the title. (9 in Agreed Bundle). In reply to these letters the first defendant wrote to PW1 stating that he was already making arrangement to sell the said land to an intending purchaser after receiving PW1's letter of 8 December 1973. He had also written for permission of the Mentri Besar for the transfer of the land which he said would take about three to six months before the permission was granted. Therefore he requested that Loong Koi would have to wait between three to six months before he could refund the money to him. (See 10 in Agreed Bundle.) Two days after this letter of the first defendant PW1 wrote again to Loong Koi on 31 December 1973 copied to the first defendant. The interesting thing about this letter is that it only asked Loong Koi to come to the office of PW1 to collect the sum of $24,824.70 (11 in Agreed Bundle). A week after that first defendant wrote to PW1 on 7 January 1974 stating to the effect that he was surprised about the previous letter of PW1 since he had not deposited any sum with PW1 (12 in Agreed Bundle). Three days after this letter was written PW1 again wrote to first defendant on 10 January 1974 stating this time that his client Loong Koi prefers to complete the agreement and does not wish to have the