Performance Bond As On-Demand Guarantee

The Performance Bond is an on-demand guarantee (or rather, under Italian Law, it is an 'autonomous' and at first demand' guarantee) by virtue of which the beneficiary (as buyer or owner) can obtain a certain amount of money on the basis of a simple request submitted to the guarantor declaring that the other party has breached some of its contractual obligations.

No need for the beneficiary to prove the actual default.

To be precise, it must be highlighted that under Italian Law the expression 'at first demand guarantee' is used improperly, in the sense that the expression 'at first demand' represents a clause that is almost always included into  Performance Bond but does not identify the real nature of the bond itself and does not automatically identify it as an autonomous bond.