A performance bond is a surety bond which guarantees that a contract will be performed. Performance bonds are commonly used in the construction of real property. For example, if a contractor fails to construct a building according to the specifications laid out by the contract (most often due to the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the amount of the performance bond.
Join the community and submit your own definition.
Join the Community!

+ Define a Word


Per curiam Per se Performance bond Perjury Personal property