Täitmisgarantiisid

Täitmisgarantiisid, commonly translated as performance guarantees or surety bonds, are financial instruments used in contracts to ensure that one party fulfills its contractual obligations. They are typically issued by a surety company at the request of a contractor or supplier (the principal) for the benefit of the party contracting for work or services (the obligee). The purpose of a täitmisgarantii is to protect the obligee against the risk of the principal's default or failure to perform as agreed.

In essence, a täitmisgarantii acts as a three-party agreement. The surety company agrees to compensate the obligee up to a specified amount if the principal fails to meet their contractual duties. This compensation can cover costs such as completing the work, rectifying defects, or covering financial losses incurred due to the principal's non-performance. The principal remains liable to the surety company for any payouts made under the guarantee.

Täitmisgarantiisid are frequently used in construction projects, public works, and other large-scale undertakings where the potential for significant financial loss due to non-performance is high. They provide a level of security and confidence for the obligee, facilitating the smooth execution of contracts. The issuance of a täitmisgarantii typically involves the surety company assessing the principal's financial stability, experience, and capacity to perform the contract.