JUDGMENT

Lee Hun Hoe CJ (Borneo):

This appeal against the decision of the learned Judge is concerned with the question of agency.

Respondents are architects with their head office in Kuala Lumpur and a branch office in Kota Kinabalu. Appellant purported to be the authorised over-seas agent of Continental Development Co. of New York (to be referred to as "CD Co.). Samuel Li Kwan Yuk (PW1), an associate of the respondents' firm in Sabah, testified that he had done a valuation for appellant in respect of Po Hing Estate in 1968 but which was completed some time in 1969. On 18 June 1969 appellant spoke to him, among other matters, the preparation of an industrial lot in Sandakan and told him that the terms of engagement would be similar to that of Po Hing project. Consequently, by a letter bearing the same date appellant wrote to respondents as follows: -"Sandakan 18 June 1969.

Messrs. Booty Edward & Partners, P.O. Box 840, Kota Kinabalu.

Dear Sirs,

With reference to our telephonic conversation this morning, I write to confirm your appointment as the Appraiser to produce a report on the Proposed Light Industrial Site at L20828 at Mile 23/4, North Road, Sandakan, giving valuations as