performance bond

[ per-fawr-muhns bond ]

noun
  1. an indemnity agreement or bond, usually issued by a bank or insurance company, to protect against loss due to breach of contract.

Origin of performance bond

1
First recorded in 1935–40
  • Also called con·tract bond .

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2024

British Dictionary definitions for performance bond

performance bond

noun
  1. a bond given by a bank to a third party guaranteeing that if a specified customer fails to fulfil all the terms of a specified contract, the bank will be responsible for any loss sustained by the third party

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012