Simple English definitions for legal terms
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An operative performance bond is a type of bond that ensures that a contractor will complete a project according to the terms of their contract. It is a legal agreement that provides financial protection to the project owner in case the contractor fails to meet their obligations. The bond is only considered "operative" or in effect once the project has started and the contractor has begun work.
An operative performance bond is a type of bond that ensures a contractor will complete a project according to the terms of their contract. It is a financial guarantee that protects the project owner from financial loss if the contractor fails to meet their obligations.
These examples illustrate how an operative performance bond works to protect project owners from financial risk. By requiring a bond, the project owner can have confidence that the contractor will fulfill their obligations and complete the project as agreed.