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What does the guaranteed amount in the contract mean?
The amount of guarantee refers to the minimum payment promised in the terms of the contract, which shall not be less than the amount agreed in the contract. Some service contracts generally calculate the workload of the service provider in a certain period according to a certain proportion, and then calculate the due fee according to the standard agreed in the agreement, which is the guaranteed amount in the contract. During the performance of the contract, if the actual income obtained by the trustee is lower than the guaranteed amount, it shall pay the guaranteed amount to the trustee in accordance with the provisions of the contract.

The amount of guarantee in the contract can protect the interests of the service provider in the performance of the contract and help the client to determine the actual cost of the contract. For service providers, the guaranteed amount can improve their enthusiasm for performing contracts and reduce the risk of default. For customers, the guaranteed amount can help them make a reasonable budget and avoid them being passive when the service provider fails to fulfill the contract.

In the actual contract performance, the agreement on the amount of guarantee is inseparable from the contract performance. In the case that the amount of guarantee agreed in the contract is higher than the actual income, the service provider will not be able to obtain additional financial benefits, which may affect the service quality due to lack of flexibility. At the same time, if the guarantee amount is less than the actual income, the service provider will inevitably have the risk of default. Therefore, when the amount of guarantee is stipulated in the contract terms, it is necessary to consider the interests and risks of all parties and formulate flexible contract terms reasonably to ensure the smooth performance of the contract.