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Performance Bonds
A Performance Bond is issued at the request of one party to a contract in favor of the other party. The intent of a Performance Bond is to protect the other party against loss in the event of default on the contract by the non-requesting party. In other words, a bond is issued to protect the recipient against loss in case the terms of a contract are not fulfilled. The bonding agent may undertake to fulfill the contract, or may simply undertake to pay a specific amount in monetary damages to the beneficiary of the Performance Bond.
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