PUC Sample Clauses

A PUC, or Performance Undertaking Clause, is a contractual provision that requires a party to guarantee the performance of certain obligations, often on behalf of another party. In practice, this clause is commonly used in construction or supply contracts, where a parent company or guarantor assures that a subsidiary or contractor will fulfill their contractual duties, such as completing a project or delivering goods. The core function of a PUC is to provide assurance and security to the beneficiary that obligations will be met, thereby mitigating the risk of non-performance and enhancing trust between parties.