Securities and guarantees are useful where significant amounts of money are involved or where a substantial payment is to be made to the contractor prior to the acceptance of the goods or services. In some contractual situations, it may be necessary to obtain separate deeds of guarantee or security. These are commonly in the form of financial securities in which the acquiring entity is entitled under the deed, to obtain financial recompense directly from a third party should the contractor fail to perform its contractual obligations. Another common form of security is performance securities in which another party agrees under a deed that, when required to do so by the acquiring entity, they will complete the performance of the contract on behalf of a defaulting contractor.