Meaning of “contract bond” in the English Dictionary


"contract bond" in Business English

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contract bondnoun [ C ]

uk us also performance bond LAW

an official promise from an organization such as a bank or insurance company to pay money to a company if its contractor (= person or company doing work for it) does not complete a job successfully:

Contract bonds are used a lot in the construction industry.

(Definition of “contract bond” from the Cambridge Business English Dictionary © Cambridge University Press)