Below please find a definition of “Letters of guarantee”
Defined Term – Letters of guarantee: Although there are different types of letters of guarantee, in general letters of guarantee are meant for safeguarding buyers to make sure that suppliers meet their obligations. A letter of guarantee is typically issued by a financial institution and serves as a contract between a buyer and a seller. Obligations that are covered by letters of guarantee are generally related to Tender Guarantee, Performance Guarantee, and Advance Payment Guarantee.
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