11 th Research Workshop on Institutions and Organizations – RWIO Center for Organization Studies – CORS July 11-12 th, , 2016 Center for Organization Studies (CORS) USP (University of São Paulo); Insper (Institute of Education and Research); UFBA (Federal University of Bahia); UFRJ (Federal University of Rio de Janeiro) and UFSCar (São Carlos Federal University) Performance bonds: a description of the system of incentives in the light of Brazilian federal legislation since 1988 and that of the United States since its original enactment. Vítor Boaventura Xavier 1 University of Brasília E-mail: vitorboaventura5@gmail.com Abstract The article describes the performance bond in the “insured party – public sector” form in the light of Brazilian federal legislation since 1988 and that of the United States since its original enactment of the Heard Act in 1894. The main legal and contractual aspects of the reciprocal incentive system are exposed to highlight the qualities of surety bonds as an alternative for the enforcement of due execution of public contracts of work and supply of goods and services. Indirectly, the positive effect of the use of the performance bond in detecting and deterring corruption in the execution of public contracts is also stressed. Key words: performance bond; contract; execution; corruption. 1 Undergraduate student in Law at the Faculdade de Direito da Universidade de Brasília – FD/UnB [Law School of the University of Brasília – FD/UnB]. Researcher linked to the Proic/CNPq linked to the Programa Ontologia e Constitucionalismo (Onthology and Constitucionalism Program). Member of the following Study Groups: Constituição, Estado e Mercado (GECEM) [Constitution, State and Market] and Comércio e Concorrência (GECC) [Commerce and Competition], both linked to the Núcleo de Direito Setorial e Regulatório da UnB (http://www.ndsr.org/) [Center of Setorial and Regulatory Law of the UnB].