Performance guarantee adjustment

A performance guarantee is a promise made that either a service lives up to certain expectations, or that a product will continue to perform well over a stated time period. In the business world, there are many such guarantees, each created in individual ways to define the contractor's commitment and extent of future responsibility. Sometimes, third parties guarantee performance of something too, especially when employing subcontractors.

Is there any agreement stating terms and conditions for it what does that state, you can further adjust in respect of same contractor just take consent with mutual understanding and putting the same under writing

Every contract is an individual entity having its own terms and conditions as per the circumstances of the issue.  If there was a specific clause in this context and mutually agreed upon by both the parties, it may take effect or else there is no question for that at all.

The same needs to be explicitly agreed and specified in both the contracts and guarantee...whereby a right to set off is given...pl check the cinditions 4 the same and take it forward