performance bond(redirected from Contract Bonds)
Also found in: Thesaurus, Financial, Encyclopedia.
Related to Contract Bonds: performance bond
(Banking & Finance) a bond given by a bank to a third party guaranteeing that if a specified customer fails to fulfil all the terms of a specified contract, the bank will be responsible for any loss sustained by the third party
Switch to new thesaurus
|Noun||1.||performance bond - a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance|