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