performance bond

from Wiktionary, Creative Commons Attribution/Share-Alike License.

• noun law A contractor's bond, guaranteeing that the contractor will perform the contract and providing that, in the event of default, the surety may complete the contract or pay damages up to the bond limit.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

• noun a bond given to protect the recipient against loss in case the terms of a contract are not filled; a surety company assumes liability for nonperformance