Document background
The Corporate Performance Guarantee is essential in commercial transactions where additional security is required for significant contractual obligations. It is commonly used in Belgian business practice when a stronger entity (typically a parent company) needs to support the obligations of a subsidiary or related entity. The document details the scope of guaranteed obligations, enforcement mechanisms, and limitations under Belgian law. It includes specific provisions required by Belgian civil and commercial law, ensuring compliance with local corporate benefit requirements and financial assistance restrictions. This guarantee type is particularly relevant in project finance, construction contracts, supply agreements, and other commercial arrangements where performance certainty is crucial. The document must comply with Belgian Civil Code provisions on guarantees (suretyship) and the Companies and Associations Code requirements regarding corporate authority and capacity.
