Mortgage and Performance bond: Difference between pages
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''Trade finance.'' | |||
A performance bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract. | |||
Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company. | |||
A performance bond can be called by the buyer in the event of any contract delays or defects in the supplier's performance of the contract. | |||
Also known as a ''performance guarantee''. | |||
== See also == | == See also == | ||
* [[ | * [[Bond]] | ||
* [[ | * [[Call]] | ||
* [[ | * [[Guarantee]] | ||
* [[ | * [[Indemnity]] | ||
* [[ | * [[Performance]] | ||
* [[ | * [[Retention bond]] | ||
* [[ | * [[Trade finance]] | ||
[[Category: | [[Category:Trade_finance]] | ||
Revision as of 11:21, 4 April 2021
Trade finance.
A performance bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.
Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.
A performance bond can be called by the buyer in the event of any contract delays or defects in the supplier's performance of the contract.
Also known as a performance guarantee.
