IISD Model Contract Clauses for Responsible Investment in Agriculture:

Customizable legal provisions to help implement international best practices, principles, and guidance on responsible agricultural investment

6. Commitment Bond

6.1 The Company undertakes to provide and deliver to the Grantor, within 1 month from the Signature Date, an unconditional and irrevocable bank guarantee as security for the achievement of the Conditions Precedent (the Commitment Bond) that are the responsibility of the Company, which shall:

(a) be in favour of the Grantor;

(b) be issued by a bank acceptable to the Parties;

(c) be valid until [insert date];

(d) be in the amount of [insert amount and currency];

(e) constitute an on-demand, unconditional, and irrevocable commitment to pay by the bank by which it is issued; and

(f) be enforceable and drawable by the Grantor in the full amount if the Company does not achieve the Conditions Precedent by the Conditions Precedent Deadline.

6.2 Unless drawn upon by the Grantor in accordance with this Agreement, the Commitment Bond shall be returned to the Company upon:

(a) completion of the Conditions Precedent by the Conditions Precedent Deadline; or

(b) termination by the Company of this Agreement upon breach of this Agreement by the Grantor in accordance with Section 60.

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