Performance Bond Template

This Performance Bond ("Bond") is entered into this _____ day of ____________, 20____, by and between ____________________ (hereinafter referred to as the "Principal"), and ____________________ (hereinafter referred to as the "Surety").

WHEREAS, the Principal has entered into a certain contract with ____________________ (hereinafter referred to as the "Obligee") dated ____________________ (the "Contract");

AND WHEREAS, under the terms of the Contract, the Principal is required to provide a bond guaranteeing the faithful performance of its obligations;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions

a) Bond Amount: The maximum liability of the Surety hereunder shall be ____________________ ($____________).

b) Obligee: The party to whom the Principal owes certain obligations under the Contract.

c) Principal: The party who has contracted with the Obligee to perform certain obligations under the Contract.

d) Surety: The party who agrees to guarantee the performance of the Principal's obligations under the Contract.

2. Scope of Bond

The Bond shall guarantee the full and faithful performance of all obligations of the Principal under the Contract, including, but not limited to, payment of debts, completion of work, and rectification of any defects or deficiencies.

3. Duration of Bond

Unless terminated earlier in accordance with the terms herein, the Bond shall remain in full force and effect until ____________________, 20____.

4. Claims Procedure

In the event the Obligee intends to make a claim under this Bond, it must provide written notice to the Surety within ________ days of discovering the occurrence of any act or omission constituting default under the Contract.

5. Obligations of Surety

If the Principal fails to fulfill its obligations under the Contract, the Surety shall promptly intervene and perform those obligations or arrange for their performance.

6. Indemnification and Subrogation

The Principal shall indemnify and hold the Surety harmless from any losses, damages, costs, or expenses incurred by the Surety as a result of its actions under this Bond. Upon performing the Principal's obligations, the Surety shall be subrogated to all rights and remedies of the Obligee against the Principal.

7. Governing Law

This Bond shall be governed by and construed in accordance with the laws of ____________________.

8. Entire Agreement

This Bond contains the entire agreement between the parties hereto related to the subject matter hereof and supersedes all prior oral or written representations or agreements.

9. Execution

IN WITNESS WHEREOF, the Principal and Surety have executed this Performance Bond as of the day and year first above written.

_________________________ (Principal)

_________________________ (Surety)

_________________________ (Print Name and Title of Principal)

_________________________ (Print Name and Title of Surety)