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.
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Shanwei Shanwei, located in the southeast coast of Guangdong Province, China, is a prefecture-level city in Guangdong Provin