Parent company guarantee
![]() | This article does not cite any sources. (June 2019) |
A parent company guarantee (PCG) is a guarantee by a parent company of a contractor’s performance under its contract with its client, where the contractor is a subsidiary of the parent company.
It is mandatory for all the companies to mention about the guarantees granted as a note in their accounts because it is a risk for the company. The parent/holding company can refuse to renew the guarantee.
Categories:
- Contract clauses
- Contract law
- Business term stubs