JUDGMENT

Nik Hashim JCA:

Background

[1] This appeal is directed against the decision of Kamalanathan Ratnam, J delivered on 13 November 2003 and reported in [2004] 1 AMR 173 in an action for specific performance of a contract brought by the respondent before us as plaintiff against the appellant as defendant.

[2] Briefly, the facts are that the appellant was the registered proprietor of 2 lots of land together with 4 houses on Brook Road, Penang (the Brook Road property) one of which was house No. 13 (the said house). The appellant instructed the respondent to draw a layout plan to provide for the sub-division of the Brook Road property into 5 separate lots namely the 4 existing houses together with a vacant piece of land next to the said house. The respondent had been in occupation of the said house since September 1970 and claimed that the said house had been sold to him. The respondent first broached the subject of buying the said house when it had a sitting tenant. At the appellant's suggestion and to move the tenant out to house No. 7, the respondent on 20 April 1970 wrote a letter (the 20 April letter) requesting the appellant to consider his offer.

[3] The application for s