Ahmad Fairuz CJ:

[1] The appellant in this case has been granted leave to appeal to the Federal Court on eight questions of law for consideration of the Court. However, during the hearing, four questions have been withdrawn leaving four questions of law to be considered by the Court namely questions ii, iii, vi and viii:

(ii) Do the terms of the performance bond (the bond) in question require the beneficiary of the bond to assert expressly and clearly in its demand thereon that the contractor had failed to perform or had committed a breach of the underlying contract between the contractor and the beneficiary in order for its demand to be valid?

(iii) Does the phrase 'we hereby submit our claim for the sum of RM2,075,700-94 as provided by the letter of guarantee 'in the 2nd defendant's demand on the bond, amount to an assertion that the 1st defendant had failed to perform or had committed a breach of the underlying contract between the 1st and 2nd defendants?

(vi) Is the contractor precluded by the phrase 'notwithstanding any contestation or protest by the contractor' in the bond from raising an objection as to the validity of the demand on the bond or as to purpose of the bond