Bank Guarantee
/ˈbæŋk ˌɡærənˈtiː/
Definitions
- (n.) A written commitment by a bank to pay a beneficiary if the applicant fails to fulfill contractual obligations.
The contractor secured the project by providing a bank guarantee to the client.
Forms
- bank guarantee
- bank guarantees
Related terms
See also
Commentary
Bank guarantees function as risk mitigation tools in commercial contracts, ensuring payment or performance; clarity in scope and conditions is crucial when drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.