performance bond

performance bond
performance bond see bond 1a

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

performance bond
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.

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