• Contract performance guarantee

My company is in the procurement. We follow some procurement guidlines approved internally by the Board. During the tender process,Can a Company accept the bank guarantee (CPG) in the name of holding company whereas subsidiary company has bid for the tender?

can a Companyaccept bank guarantee(CPG) in the name of consortium partner (not from the lead member)
Asked 1 year ago in Business Law from Noida, Uttar Pradesh
1) if the successful bidder is the subsidiary company insist on bank guarantee from the subsidiary company 

2) accept BG from the lead member 
Ajay Sethi
Advocate, Mumbai
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“Escrow Account” means an account to be established and maintained by the Borrower with escrow agent in the name of the Borrower in which all the Receivables shall be deposited 
Ajay Sethi
Advocate, Mumbai
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An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. This is a temporary account as it operates until the completion of a transaction process, which is implemented after all the conditions between the buyer and the seller are settled. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled.The escrow agent has the duty to properly account for the escrow funds and ensure that usage of funds is explicitly for the purpose intended. Escrow is used in the field of automated banking and vending equipment. One example is automated teller machines (ATMs), and is the function which allows the machine to hold the money deposited by the customer separately, and in case he or she challenges the counting result, the money is returned. Another example is a vending machine, where the customer's money is held in a separate escrow area pending successful completion of the transaction. If a problem occurs and the customer presses the refund button, the coins are returned from escrow; if no problem occurs, they fall into the coin vault of the machine. Bankruptcy  laws may interfere with the execution of a source code escrow agreement, if the bankrupt licensor's creditors are legally entitled to seize the licensor's assets – including the code in escrow – upon bankruptcy, preventing the release of the code to the license.

Bids purchased by an entity can be used by the consortium as long as the entity that purchased the bid document remains the lead equity partner.   In case of bidding by a consortium, MOU/ JV agreement entered into by the parties of the consortium clearly stating the Lead Partner as well as Authorized signatory to the  Application?cum?Bid shall be furnished.  Documents/details as required in the bid must be furnished by each  partner member of the consortium/joint venture complete in all respects along with the bid offer. Each qualifying  criteria must be met by at least one of the partner clearly indicating so in the application?cum?bid.
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