JUDGMENT

Edgar Joseph Jr. SCJ:

The facts which gave rise to the dispute which resulted in the litigation in the High Court (Commercial Division), Kuala Lumpur, and which in turn led to this appeal are simple and may be stated shortly. But, before we proceed to do so, we wish to say at the outset, that in this judgment, unless the context otherwise requires, it would be more convenient to refer to the appellant Coramas Sdn. Bhd., the first respondent Rakyat Merchant Bankers Bhd., and the second respondent Rakyat First Nominees Sdn. Bhd., as the plaintiff, the first defendant and the second defendant, respectively.

By an alleged oral agreement confirmed by a letter dated 14 December 1989 signed by the Managing Director of the plaintiff, Mr. Patrick Lim Hong Koon, addressed to the first defendant, the latter had agreed to sell and the plaintiff had agreed to purchase 7.8 million shares in Kesang Corporation ("Kesang") at a price of RM2.70 per share amounting to RM21.06 million. The terms of that letter were as follows:

14 December 1989

Rakyat First Merchant Bankers Berhad, 9th Floor, Bangunan Angkasa Raya, Jalan Ampang, 50450 Kuala Lumpur.

Attention: Ms. Yong Siew Kat

Dear Ms.

R