GUARANTEE BOND FOR THE PERFORMANCE OF A CONTRACT
This deed of guarantee made the……………day of……20………...between __________ son of etc. (hereinafter called the guarantor) which expression shall ………..of the one part and _______________ son of………..etc. (hereinafter called the principal) which expression shall of the other part.
WHEREAS by an agreement dated………….made between___________ son of etc., therein referred to as the contractor of the one part and the said _____________ therein referred to as principal of the other part, it was inter alia agreed by and between the parties as follows:
(State the nature of work to be done by the contractor).
And whereas the said work was entrusted to the contractor upon the guarantor having agreed with the principal as to its guarantee of performance by the contractor and to indemnify and keep indemnified the principal against all losses, damages, costs, charges and expenses arising out of performance or non-performance thereof. Now it is agreed and declared by and between the parties as follows:
THE GUARANTOR will see that the contractor unless relieved from the performance by operation of any clause of the contract or by statute or by virtue of the decision of any tribunal or court of competent jurisdiction, shall carry out, execute and perform the contract without any exception or reservation and in case he commits any breach thereof the guarantor will indemnify and keep indemnified the principal and his estate against all losses, damages, costs, expenses, or otherwise which he may suffer or otherwise incur by reason of any act, negligence, default or error in judgment on the part of the contractor in performing or non-performing the contract.
In case of any dispute or difference as regards the quantum of such losses or damages or costs, charges and expenses, the same shall be decided by reference to arbitration of one architect or engineer if the parties so agree or otherwise of two architects or engineers, one to be appointed by each, the two would appoint an Umpire and whose decision shall be final and binding on all parties.
IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals the day, month and year first above-written:
Signed, sealed and delivered in the presence of: