# Advance payment guarantee

- Canonical URL: https://www.gerhardmerk.de/advance-payment-guarantee
- Post ID: 590345
- Modified: 2023-07-25T20:47:22+00:00
- Language: en

## Definition

The seller's bank provides an (abstract) promise of payment in favor of the buyer for the refund of a down payment (advance payment) made in the event of a breach of contract. The amount of the guarantee is the amount of the down payment; its term is usually until the delivery of the goods plus fifteen days. - The buyer who has made a down payment thus also receives assurance that his money will be used in accordance with the contract; because the bank granting the guarantee will usually monitor the seller (its customer) for this. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1