Performance Guarantee Format

Dear [Recipient],

This letter serves as a performance guarantee issued by [Guarantor] on behalf of [Company Name]. We hereby guarantee the performance of [Contract/Agreement] entered into between [Recipient] and [Contractor/Supplier] in accordance with the terms and conditions outlined in the agreement.

[Guarantor] hereby agrees to be liable for any financial losses or damages incurred by [Recipient] as a result of [Contractor/Supplier] failing to meet the obligations specified in the contract. This guarantee shall remain valid until [Expiration Date] or until the completion of the project, whichever comes first.

In the event that [Contractor/Supplier] fails to fulfill their obligations under the contract, [Recipient] shall have the right to call upon this guarantee and demand payment from [Guarantor] for the amount specified in the contract. [Guarantor] agrees to make the payment within [Number] days of receiving a written demand from [Recipient].

This guarantee is subject to the laws of the state of [State] and any disputes arising from this guarantee shall be resolved through arbitration in [City], in accordance with the rules of the [Arbitration Association/Institution].

Thank you for your attention to this matter. Please do not hesitate to contact us if you require any further information.

Sincerely,

[Guarantor]