Demand Guarantee check0 / 1 answered · 0 correct
Check 1
Which guarantee commonly supports repayment of money paid before performance?
Common Types of Guarantee
Performance, advance-payment, bid, payment, retention and warranty guarantees.
Performance guarantee
Supports performance of a contractual obligation. A demand may arise if the applicant does not perform as required and the beneficiary presents the documents stated in the guarantee.
Advance-payment guarantee
Supports repayment of an advance if the applicant does not earn or return it according to the underlying deal. The guarantee may contain an effective-date mechanism tied to receipt of the advance.
Bid or tender guarantee
Supports a bidder’s commitments during a tender process, for example entering the contract or providing required security if awarded.
Payment, retention and warranty guarantees
Payment guarantees support payment obligations. Retention guarantees can replace cash retention. Warranty or maintenance guarantees support obligations during a post-completion period.
Remember thisThe name tells you the commercial purpose; the actual guarantee wording tells you the payment conditions.
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