Performance Bond
/ˈpɜːrfərməns bɒnd/
Definitions
- (n.) A surety bond issued by a bank or insurance company guaranteeing satisfactory completion of a project by a contractor.
The contractor provided a performance bond to assure the client of project completion.
Forms
- performance bonds
Related terms
Commentary
Performance bonds are commonly required in construction contracts to protect project owners from non-performance risks.
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.