Trading TermsRectangle Latest Quarterly Earnings Short Position Limit Move Price/Earnings Ratio ERISA
Performance bond (guarantee)
A performance bond is a contractual agreement that serves as a form of security for one party's performance. In the event that the principal fails to fulfill their obligation, the beneficiary has the right to receive payment from the bond. This type of bond can be either demand or conditional, which determines whether the beneficiary must prove the default by the principal in order to receive payment. It is an important aspect of risk management in financial transactions and should be carefully considered by all involved parties.
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