performance bond

performance bond definition - business

performance bond

A financial guarantee that a service will be provided or a contract will be satisfactorily completed. For example, a contractor posts a performance bond to guarantee a project will be completed on time.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.