Teljesítésbiztonság

Teljesítésbiztonság, often translated as "performance security" or "security of performance," is a concept in Hungarian law and contract practice that relates to ensuring the successful and complete fulfillment of contractual obligations. It addresses the risk that one party to a contract may fail to perform their duties as agreed. This concept aims to provide a mechanism for the non-defaulting party to mitigate losses or secure the expected outcome of the contract.

In essence, teljesítésbiztonság refers to the various methods and instruments employed to guarantee that a contractual partner will indeed carry out their responsibilities. These can include financial guarantees, such as bank guarantees or performance bonds, which provide a source of funds if the performing party defaults. Other forms might involve collateral or specific contractual clauses that impose penalties for non-performance or delay. The underlying principle is to create a safety net that protects the interests of the party relying on the performance of the other.

The application of teljesítésbiztonság is particularly common in complex or high-value transactions, construction projects, and international trade where the risks of non-performance are significant. Hungarian legal frameworks often provide for or allow parties to contractually agree upon such security measures to enhance trust and reduce uncertainty in their business dealings. The specific form and amount of performance security are typically negotiated and defined within the contract itself.