ESSO Petroleum Malaysia Inc v Kago Petroleum Sdn Bhd [1995]

ESSO Petroleum Malaysia Inc v Kago Petroleum Sdn Bhd [1995]

In this case it was settled that the principle that an unconditional on-demand performance guarantee be it a bond or a bank guarantee is independent of any underlying contract between the parties. It is not open to the courts to impart into the guarantee a requirement to have regard to, or to enquire into any breach of any obligation of such underlying contract.

ESSO Petroleum Malaysia Inc v Kago Petroleum Sdn Bhd [1995]