Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
nonoperative performance bond
A performance bond that is not currently in effect but is activated upon the issuance of the buyer's letter of credit or other approved financing.
nonoperative performance bond.
See PERFORMANCE BOND.
operative performance bond
A performance bond that has been activated by the issuance of the buyer's letter of credit or other approved financing.
operative performance bond.
See PERFORMANCE BOND.
performance bond
1. A bond given by a surety to ensure the timely performance of a contract. ( In major international agreements, performance bonds are typically issued by banks, but sometimes also by insurance companies. The face amount of the bond is typically 2% of the value of performance, but occasionally as much as 5%. 2. A third party's agreement to guarantee the completion of a construction contract upon the default of the general contractor. -Also termed completion bond; surety bond; contract bond. Cf common-law bond under BOND (2).
performance bond.
See PERFORMANCE BOND.
revolving performance bond
A performance bond that is in effect on a continuing basis for the duration of the contract, usu. plus an additional number.of days (often 45).
up-front performance bond
See PERFORMANCE BOND.