Performance bond: Difference between revisions

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imported>Doug Williamson
(Add Performance guarantee.)
imported>Doug Williamson
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''Trade finance.''
''Trade finance.''


A 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.   
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.




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* [[Guarantee]]
* [[Guarantee]]
* [[Indemnity]]
* [[Indemnity]]
* [[Nature performance bond]]
* [[Performance]]
* [[Performance]]
* [[Performance guarantee]]
* [[Retention bond]]
* [[Retention bond]]
* [[Trade finance]]
* [[Trade finance]]


[[Category:Trade_finance]]
[[Category:Trade_finance]]

Latest revision as of 19:23, 4 March 2023

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.


Also known as a performance guarantee.


See also