performance bond

performance bond
performance bond see bond 1a

Merriam-Webster’s Dictionary of Law. . 1996.

performance bond
n.
A bond given as surety by a building contractor to a customer to ensure that the contractor will complete the project, and that the customer may use to pay for completion if the contractor defaults.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


performance bond
Also known as performance guarantee. A bond designed to ensure that the seller delivers goods or performs services in accordance with the terms of the contract and at the agreed time. The issuer of the bond undertakes to pay to the buyer a sum of money if the seller fails to deliver the goods or perform the contracted services on time or in accordance with the terms of the contract.
Related links
Bonds, guarantees and standby credits: overview

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Performance bond — A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. A job requiring a payment performance bond will usually require a bid bond, to bid the job. When the… …   Wikipedia

  • performance bond — A type of insurance purchased by a builder that protects both the bank and the owner by providing that the insurance company will be responsible for completing construction if the contractor fails to do so. American Banker Glossary A surety bond… …   Financial and business terms

  • performance bond call — 1 A request from a brokerage firm to a customer to bring performance bond deposits up to minimum levels. 2 A request by CME Clearing to a clearing firm to bring clearing performance bonds back to levels required by the Exchange Rules. Most… …   Financial and business terms

  • performance bond — A type of contractors bond; a bond which guarantees that the contractor will perform the contract, and usually provides that if the contractor defaults and fails to complete the contract, the surety can itself complete the contract or pay damages …   Ballentine's law dictionary

  • performance bond — noun a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance • Syn: ↑surety bond • Hypernyms: ↑bond, ↑bond certificate …   Useful english dictionary

  • performance bond — noun A contractors bond, guaranteeing that the contractor will perform the contract and providing that, in the event of default, the surety may complete the contract or pay damages up to the bond limit …   Wiktionary

  • Performance Bond — A bond issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract. For example, a contractor may issue a bond to a client for whom a building is being constructed. If the… …   Investment dictionary

  • performance bond. — See contract bond. [1935 40] * * * …   Universalium

  • performance bond — noun a bond issued by a bank or other financial institution, guaranteeing the fulfilment of a particular contract …   English new terms dictionary

  • performance bond — A guarantee given to customers in some industries that goods will be delivered to a specific standard. The bond is normally given by a company s bankers, who are indemnified by the company …   Accounting dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”