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KembaraXtra – Legal Terms – Performance Bond
A performance bond is a financial guarantee ensuring that contractual obligations will be properly performed.
The bond is commonly used in construction and commercial contracts.
If the contractor fails to perform, the beneficiary may claim compensation under the bond.
Performance bonds are usually issued by banks or insurance companies.
The bond protects against financial loss arising from non-performance or defective performance.
A performance bond is a financial guarantee ensuring that contractual obligations will be properly performed.
The bond is commonly used in construction and commercial contracts.
If the contractor fails to perform, the beneficiary may claim compensation under the bond.
Performance bonds are usually issued by banks or insurance companies.
The bond protects against financial loss arising from non-performance or defective performance.
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