Performance Bond Format Template

Dear [Recipient's Name],

This is to certify that we, [Company Name], have entered into a contract with you, [Contractor/Supplier Name], on [Date of Contract]. In accordance with the terms and conditions of the said agreement, we are pleased to issue this performance bond to guarantee your faithful performance of the contractual obligations.

The terms and conditions of this performance bond are as follows:

1. Bond Amount: The total value of this performance bond is [Amount in Words] ([Amount in Numbers]).

2. Effective Date: This performance bond will be effective from [Effective Date] and will remain valid until [Expiry Date].

3. Beneficiary: The beneficiary of this performance bond is [Beneficiary Name] and their address is [Beneficiary Address].

4. Obligations: This performance bond guarantees the satisfactory completion of all contractual obligations by the contractor/supplier within the agreed timeframe and specifications.

5. Claims: In the event of default or failure on the part of the contractor/supplier to fulfill their obligations under the contract, the beneficiary reserves the right to make a claim against this performance bond.

6. Liability: The liability of [Company Name] under this performance bond shall not exceed the total bond amount mentioned in section 1.

7. Governing Law: This performance bond shall be governed by and construed in accordance with the laws of [Jurisdiction].

8. Termination: This performance bond may be terminated by either party upon written notice to the other party, provided that all contractual obligations have been duly fulfilled.

Please sign and return a copy of this performance bond to acknowledge your acceptance of its terms. Failure to do so within [Number of Days] days will be considered as your acceptance and agreement to the terms stated herein.

Thank you for your cooperation, and we look forward to the successful completion of our contractual obligations.

Sincerely,

[Your Name]

[Your Position]

[Company Name]