BANK GUARANTEE ON BEHALF OF
A CONTRACTOR IN LIEU OF EARNEST MONEY
In consideration of
the…………….Corporation (hereinafter called "the Corporation") having
agreed to exempt …………….(hereinafter called "the said Contractor")
from the demand, under the terms and
conditions of an Agreement dated…………….made between Corporation and…………….(hereinafter called
"the said Agreement") of Earnest Money deposit for the due fulfilment
by the said Contractor of the terms and conditions contained in the said Agreement, on production of a
Bank guarantee for Rs …………….we . …………….Bank, (hereinafter referred to as
"the Bank") do hereby undertake to pay to the Corporation an amount
not exceeding Rs…………….against any loss or damage caused to or suffered or would
be caused to or suffered by the Board by reason of any breach by the said
Contractor of any of the terms or conditions contained in the said Agreement.
2.
We …………….Bank, do hereby
undertake to pay the amounts due and payable under this guarantee without any
demur, merely on a demand from the
Corporation stating that the amount claimed is due by way of loss or
damage caused to or would be caused to or suffered by the Corporation by reason
of any breach by the said Contractor of any of the terms or conditions
contained in the said Agreement or by reason of the Contractors failure to
perform the said Agreement. Any such demand made on the Bank shall be
conclusive as regards the amount due and payable by the Bank under this
guarantee. However, our liability under this guarantee shall be restricted to
an amount not exceeding Rs .
................................
3.
We …………….Bank, further agree
and undertake that the guarantee herein contained shall remain in full force
and effect during the period that would
be taken for the performance of the said Agreement and that it shall continue
to be enforceable till all the dues of
the…………….Corporation under or by virtue of the said Agreement have been fully
paid and its claims satisfied or
discharged or till the Corporation certifies that the terms and conditions of
the said Agreement have been fully and
properly carried out by the said Contractor and accordingly discharges the
guarantee. Unless a demand or claim
under this guarantee is made on us in writing on or before the…………….we shall be
discharged from all liability under this
guarantee thereafter.
4.
We …………….Bank, further agree
with the Corporation that the Corporation shall have the fullest liberty
without our consent and without affecting in any manner our obligations
hereunder to vary any of the terms and conditions of the said agreement or to
extend time of performance by the said Contractor from time to time or to
postpone for any time or from time to time any of the powers exercisable by the
Corporation against the said Contractor and to forbear or enforce any of the
terms and conditions relating to the said Agreement and we shall not be
relieved from our liability by reason of any such variation or extension being
granted to the said Contractor or for any forbearance, act or omission on the
part of the Corporation or any indulgence by the Corporation to the said
Contractor or by any such matter or thing whatsoever which under the law
relating to sureties would but for this provision have effect of so relieving
us.
5.
We…………….Bank, further
undertake and agree not to revoke this guarantee during its currency except
with the previous consent of the Corporation in writing.
Dated,
the ……………. for…………….Bank
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