The Contract Performance Guarantee is a fundamental security instrument in Austrian business practice, commonly used to protect parties against the risk of contractual non-performance. It is particularly relevant in scenarios involving significant commercial contracts, construction projects, or supply agreements where one party seeks financial security for the other party's performance obligations. The guarantee, regulated under Austrian law including the ABGB (Austrian Civil Code) and UGB (Commercial Code), typically amounts to 5-10% of the underlying contract value. This document becomes crucial when entering into substantial commercial agreements, particularly in sectors involving large-scale projects or significant financial commitments. The guarantee provides the beneficiary with quick access to funds in case of the principal's default, while also offering the principal an alternative to cash deposits or other forms of security.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of the Guarantor (usually a bank), the Principal (contractor whose performance is being guaranteed), and the Beneficiary
2. Background: Reference to the underlying contract/relationship and the reason for issuing the guarantee
3. Definitions: Key terms used in the guarantee document
4. Guarantee Amount: The maximum amount of the guarantee and the currency
5. Scope of Guarantee: Detailed description of what performance is being guaranteed and the extent of the guarantor's obligations
6. Duration and Validity: The effective period of the guarantee, including start date and expiry date
7. Conditions for Payment: The circumstances and procedures under which the guarantee can be called
8. Form of Demand: The required format and content of any demand under the guarantee
9. Payment Terms: The timeline and method for payment upon receipt of a valid demand
10. Reduction Provisions: Conditions under which the guarantee amount may be reduced
11. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes
12. Notices: Communication procedures and contact details for all parties
1. Transfer and Assignment: Include when the guarantee needs to be transferable or when assignment needs to be specifically prohibited
2. Language: Include when the guarantee may be used internationally to specify the prevailing language version
3. Multiple Demands: Include when multiple partial demands are permitted under the guarantee
4. Force Majeure: Include when specific force majeure provisions are required, particularly for long-term guarantees
5. Anti-Money Laundering Provisions: Include when required by the guarantor bank's compliance requirements
6. Tax Provisions: Include when tax implications need to be specifically addressed
7. Electronic Presentation: Include when electronic demands or communications are permitted
1. Form of Demand: Template for making a demand under the guarantee
2. Underlying Contract Extract: Relevant excerpts from the underlying contract being guaranteed
3. Authorized Signatories: List of persons authorized to make demands under the guarantee
4. Payment Instructions: Detailed banking and payment information for guarantee payments
5. Supporting Documents: List and samples of required supporting documents for making a demand
Find the exact document you need
Payment And Performance Guarantee
An Austrian law-governed guarantee securing both payment obligations and performance requirements, typically issued by a financial institution to protect the beneficiary's interests.
Download
Contract Performance Guarantee
An Austrian law-governed bank guarantee securing a contractor's performance obligations, typically payable on first demand and subject to Austrian civil and commercial law.
Download
Performance Guarantee Bond
An Austrian law-governed financial guarantee instrument where a bank guarantees the performance obligations of a contractor/principal to a beneficiary.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)