There is an oddity in the fact of a Government issuing Promissory Notes in connection with a contract with a 3rd party awarded by Tender. Indeed, it is usually the successful Tenderer who has to issue a Performance Bond (Bank Guarantee) for anything up to 20% of the value of the Tender which acts as a penalty should they fail to perform the contract.
A Promissory Note is in effect a Bank Guarantee though the actual terms of the Note cannot be ascertained without sight of the Note itself. This means it has a legal life quite outside of the terms of the Tender or Contract Award.
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