Performance Bond in payment
Performance Bond (P/B)
- Details
- Parent Category: Support for Trader
- Category: Payment Terms
- Hits: 3496
Performance Bond No. ref. To (Full name and address)
Dear Sirs,
You have concluded on /date _ contract No with Messrs _ (company name) for the purchase of: (A brief description of the contract details is Following- quantity, price, shipment, quality specs… ) As security for the due performance of the contract (_)an indemnity by a bank shall be furnished.
At the request of (company name) we, herewith irrevocably undertaken to pay you on first demand, irrespective of the validity and the legal effects of the above mentioned contract and waiving all rights of objection and defense arising therefrom, the amount of the 5% of the total contract value of usdollars .. (in words dollars) upon receipt of your duly signed request for payment stating that Messrs , have failed to fulfil their contractual obligations.