performance bond

[ per-fawr-muhns bond ]
/ pərˈfɔr məns ˌbɒnd /

noun

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

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Also called con·tract bond .

Origin of performance bond

First recorded in 1935–40
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020

British Dictionary definitions for performance bond

performance bond

noun

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