A bank guarantee is a form of obligation security used to compensate the beneficiary in case of the principal’s breach of obligation.
Principal
Party with primary obligation
Beneficiary
The party in whose favor the bank guarantee is issued
Guarantor
Guarantee recipient/beneficiary
Tender/Auction Guarantee
Performance Guarantee
Advance Payment Guarantee
Defects Liability (Quality) Guarantee
Payment Guarantee
Trade Transaction Guarantee
Customs Duty Guarantee
Standby Letter of Credit (SBLC)
