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A Contract Performance Guarantee is a crucial security instrument in commercial transactions under Irish law, commonly used in construction, infrastructure, and large-scale commercial projects. This document is essential when a party (the beneficiary) requires security for the performance of contractual obligations by another party (the principal obligor). The guarantee is typically provided by a bank, financial institution, or parent company, who steps in as guarantor to ensure the beneficiary's interests are protected. The Contract Performance Guarantee becomes particularly relevant in high-value contracts or where the principal obligor's financial standing or performance capability requires additional security. It sets out specific trigger events for calling on the guarantee, defines the guaranteed sum or obligations, and establishes clear procedures for making demands and receiving payment. The document must comply with Irish legal requirements, including the Statute of Frauds (Ireland) 1695 and relevant banking regulations, while also considering any specific sector-related requirements or standard market practices.

1. Parties: Identification of the Guarantor, the Beneficiary, and the Principal Obligor (the party whose performance is being guaranteed)

2. Background: Context of the guarantee, reference to the underlying contract, and purpose of the guarantee

3. Definitions: Definitions of key terms used throughout the guarantee, including 'Guaranteed Obligations', 'Guaranteed Sum', and 'Demand'

4. Guarantee and Indemnity: Core provisions setting out the guarantee obligations and indemnity provided by the guarantor

5. Scope of Guarantee: Detailed description of what obligations are covered and the maximum liability amount

6. Duration: Term of the guarantee, including start date and expiry conditions

7. Demands Under Guarantee: Process and requirements for making valid demands under the guarantee

8. Payment Provisions: Timeline and mechanics for payments following a valid demand

9. Guarantor's Obligations: Specific undertakings and continuing obligations of the guarantor

10. Preservation of Rights: Provisions ensuring the guarantee remains valid despite changes to the underlying contract or circumstances

11. Representations and Warranties: Standard representations and warranties from the guarantor

12. Governing Law and Jurisdiction: Specification of Irish law as governing law and jurisdiction for disputes