Teljesítköt

Teljesítköt is a Hungarian term that translates to "performance bond" or "performance guarantee" in English. It is a type of surety bond that is used in construction and other industries to ensure that a contractor or supplier fulfills their contractual obligations. When a project is awarded, the party awarding the contract (the obligee) may require the contractor or supplier (the principal) to obtain a performance bond from a surety company. This bond guarantees that the principal will complete the project according to the terms and conditions of the contract. If the principal fails to perform, the obligee can make a claim against the performance bond, and the surety company will compensate the obligee for any losses incurred, up to the bond's limit. This provides financial protection for the obligee and ensures project completion. Performance bonds are commonly used in public works projects, large commercial developments, and situations where significant financial investment is at stake. The surety company assesses the principal's financial stability and expertise before issuing the bond.