Draft Performance Bond (PB)

DRAFT PERFORMANCE BOND
(2% of Documentary Letter of Credit Value)

 

Bond No.: [Insert Number]
Date: [Insert Date]

​

1. Parties

• Principal (Seller): Cuprumex Ltd. London, UK

• Obligee (Buyer/Beneficiary): [Insert Full Legal Name, Address]

• Surety (Bank): [Insert Full Legal Name, Address]

 

2. Recitals

WHEREAS, the Principal has entered into a contract dated [Insert Date] with the Obligee for the supply and delivery of [Insert Goods], secured by a Documentary Letter of Credit (“DLC”) issued in favor of the Principal; and

WHEREAS, the Obligee requires a Performance Bond equal to two percent (2%) of the DLC value to guarantee the faithful performance of the Principal’s obligations under said contract.

 

3. Bond Amount

The Surety hereby binds itself to the Obligee in the sum of 2% of the DLC value, being [Insert Currency and Amount], for the due performance of the Principal’s contractual obligations.

 

4. Conditions

• This Bond shall remain valid and enforceable until [Insert Expiry Date or Event, e.g., completion of delivery and acceptance].

• The Surety shall pay the Obligee upon first written demand, without demur or objection, any amount up to the Bond value, if the Principal fails to perform its obligations under the contract.

• Partial claims may be made under this Bond, provided the aggregate does not exceed the Bond amount.

• This Bond is irrevocable, unconditional, and payable on demand.

 

5. Governing Law & Jurisdiction

This Bond shall be governed by and construed in accordance with the laws of [Insert Jurisdiction]. Any disputes shall be subject to the exclusive jurisdiction of the courts of [Insert Jurisdiction].

 

6. Execution

IN WITNESS WHEREOF, the Surety has executed this Performance Bond on the date first above written.

 

Surety (Bank/Guarantor):
Authorized Signatory: ____________________
Name: ____________________
Title: ____________________
Seal/Stamp: ____________________