contract bond

Definition of "contract bond"
  1. A type of bond used to safeguard an individual or company from losses that might occur due to non-compliance or violation of a contractual agreement, especially in construction or supply services
How to use "contract bond" in a sentence
  1. The construction company took out a contract bond to protect against possible breaches in the construction agreement.
  2. To ensure the timely completion of the project, the supplier was required to secure a contract bond.
  3. Due to past contractual issues, they are now required to provide a contract bond before they can start any new projects.

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