Good contract enforcement guarantee is a bond received in order to prevent any breach of the contract and ensure the fulfillment of the obligations in a favorable manner consistent with the contractual conditions and employer’s loss compensation. Good contract enforcement guarantee has become prevailing as performance guarantee and surety bond in England’s laws and it is completely well-known in the laws of the foresaid country and it features its own specific verdicts. As for the nature of the Good contract enforcement guarantee, there are various notions offered, including the following: “corresponding to the principle of contract freedom and article 10 of the civil law and mortgaging a debt through setting a condition for the suspension of the result”. But, the idea that can better justify the nature of this type of guarantee is the principle of contract freedom stipulated in article 10 of the civil law. Nowadays, the variegated examples of Good contract enforcement guarantee, like “guarantee for taking part in bids and tenders” and “good performance guarantee” have been transformed into common practices in substantial commercial contracts. So, they are required to be studied.
