Introduction

A written document issued by Bank of China at the request of the customer to the owner of a contracted project or the buyer of a sales deal, guaranteeing the applicant will strictly perform the contracts.

Functions

Guarantee proper fulfillment of contractual obligations and the quality of the subject matter of contract; solve the problem of mutual mistrust between the parties, and reduce capital occupation.

Features

1.Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, Bank of China involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.

2.Guarantee fulfillment of contractual obligations，as well as quality of the subject matter of contract.

3.Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid or reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.