Performance bond: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add Trade finance header.) |
imported>Doug Williamson (Layout.) |
||
| Line 6: | Line 6: | ||
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. | 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. | ||
== See also == | == See also == | ||
* [[Bond]] | * [[Bond]] | ||
* [[Indemnity]] | * [[Indemnity]] | ||
Revision as of 14:28, 6 May 2016
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.
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.
