Hashim Yeop A Sani J:

This is a claim by the plaintiff bank for the recovery of the sum of $75,000 with interest and costs based on a contract of guarantee executed by the defendant on 4 August 1966. A copy of the contract of guarantee is at enclosure (13) in the Agreed Bundle (P1). In their pleadings the plaintiffs state that in pursuance of the said letter of guarantee the plaintiffs made advances to the Malaysia Timber and Granite Products Ltd (hereinafter referred to as "MTGP") which together with interest, commission and banking charges amounted to $534,408.74 as at 27 July 1969. By letter dated 7 December 1968 the plaintiffs through their solicitors to MTGP demanded payment of the sum of $462,039.39 being the amount then due as neither MTGP nor the defendant had paid the said sum or any part thereof. By a further letter dated 11 August 1969 the plaintiffs through their solicitors to the defendant demanded payment of the said sum of $75,000 but the defendant had not paid the said sum or any part thereof. It is the contention of the plaintiffs that the contract of guarantee is a continuing one and that the liability of the defendant on the said guarantee is limited to