Performance Bond

Performance Bond in International Trade

Meaning of Performance Bond, according to the Dictionary of International Trade (Global Negotiator): A bond which guarantees proper fulfillment of the terms of a contract. In practice, the beneficiary of the bond (usually the buyer or services and/or goods), will claim financial restitution under the bond if the principal (supplier of the services and or the gods) fails to comply with the terms and conditions in the contract.

See bid bond; guaranty.