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Surety Bond

A surety bond is a legally binding agreement between three parties: the principal (the person or entity required to have the bond), the obligee (the entity requiring the bond), and the surety (the company providing the bond).

There are two common types of surety bonds: contract bonds and commercial bonds. Contract bonds ensure the completion of a construction project and the fulfillment of related obligations, while commercial bonds serve to protect against financial losses resulting from dishonesty or failure to perform contractual duties.

Sample sentences:

• The contractor had to obtain a surety bond to secure the construction project.
• The court required the defendant to post a surety bond as a guarantee of appearance in future hearings.
• As a landlord, it is wise to ensure your tenants provide a surety bond to protect against damages.

Explore related products on Amazon:

• Books about Surety Bonds
• Surety Bond Forms
• Surety Bond Insurance