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BANK GUARANTEE
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Bank Guarantee
Sec 126 of the Indian Contract Act, 1872 defines a guarantee as .a contract to perform the promise or discharge the liability of a third person in case of his default.
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Bank Guarantee
Three Parties to a Bank Guarantee
The Applicant
The client on whose behalf the guarantee is being issued.
The Beneficiary
To whom the guarantee is issued.
The Guarantor
It is the issuing bank.
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Performance Guarantee
The issuing bank provides a guarantee to the beneficiary to make good the monetary loss in the event of non-performance or short-performance of a contract by the client (applicant).
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THANK YOU
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