- 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 contractor fails to construct the building according to the specifications laid out by the contract, the client is guaranteed compensation for any monetary loss.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
performance bond — see bond 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. performance bond n … Law dictionary
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 — 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. — 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
performance bond. — See contract bond. [1935 40] … Useful english dictionary