GROUNDS OF JUDGMENT

1. By two Guarantees dated 27.06.1997, the Defendant granted by guarantee to the Plaintiff an option to resell 2 pieces of land to the Defendant at the repurchase price and on the terms and conditions contained in the said guarantees. The said lands were lands which the Plaintiff had agreed the same day to purchase from Defendant's wholly-owned subsidiary Capital Land Sdn. Bhd. (the Vendor) and were part of a project developed by the said subsidiary. The option was subsequently exercised by the Plaintiff but the Defendant failed to repurchase the said lands from the Plaintiff.

2. The issues agreed to be tried are as follows:-

(a) Whether late payment of the 2nd instalment of the purchase price for the land identified as Lot No. 1739 constituted a breach of the Sale and Purchase Agreement dated 27.06.1997 in respect of the said Lot No. 1739;

(b) If the said delay in payment did constitute a breach under the said Sale and Purchase Agreement for the said Lot 1739, did such delay and/or breach invalidate the said Guarantee dated 27.06.1997 given by the Defendant for Lot No. 1739.

3. The Vendor was the developer of a "homestead orchard" project known as Bukit Emas Homeste