We have been informed that _________________, (hereinafter called the Principal), has entered into contract No. ____________________ dated _________________ with you , for the supply of (description of goods and/or services)

Furthermore, we understand that, according to the conditions of the contract, a performance guarantee is required.

At the request of the Principal, we (NAME OF BANK) __________ hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of ________________ (say: _________________) upon receipt by us your first demand in writing and your written statement stating:

• that the Principal is in breach of his obligation(s) under the underlying contract, and
• the respect in which the Principal is in breach.

Your demand for payment must also be accompanied by the following document(s) (specify document(s) if any, or delete)

This guarantee shall expire on _______________ at the latest.

Consequently, any demand for payment under it must be received by us at this office on or before that date.