Which of the following best explains 'performance guarantee'?
A) Written guarantee from a third-party guarantor.
B) The contractor guarantees the actual output or outcome of the work to be delivered.
C) Holding company secures payment for agreed sum in case business unit fails to make payments.
D) Business unit guarantees to pay holding company.

Question

Which of the following best explains 'performance guarantee'? 
A) Written guarantee from a third-party guarantor. 
B) The contractor guarantees the actual output or outcome of the work to be delivered. 
C) Holding company secures payment for agreed sum in case business unit fails to make payments. 
D) Business unit guarantees to pay holding company.

Quizplus · Accepted Answer

A performance guarantee refers to a contractor's commitment to deliver a certain level of output or outcome for a project. It means that the contractor ensures that the work they will do will meet the standards and requirements that have been set by the contract.

Which of the Following Best Explains 'Performance Guarantee