Lust is the source of all the crime which takes place on the earth. There could be a breach of trust between husband and wife or between employee and the employer. The breach of trust could be when one of the parties to the contract signed between the two parties fail to fulfill the terms and conditions of the agreement. In order to safeguard oneself from the breach of the contract and safeguarding the interest, people go for the surety bonds.
What is surety bond?
A surety bond is an assurance given by the guarantor to the first party that if the second party fails to fulfill the contract then the guarantor will pay a certain sum of amount to the first party. This bond is between three parties. The guarantor, oblige and the principal. Here principal is the party who commits to provide certain services or to fulfill the conditions of the bond with the obligee. The receiver of the services or the products and the guarantor who assures the oblige that if the principal fails to fulfill the conditions of the contract then he will pay a certain amount to meet the loses due to the failure of the contract.
Types of Surety bonds
You can visit Bonds Express to know exactly the types of bond available and which bond is going to fulfill your requirement. The general types of bonds are as follows:
- Contract surety bond: This contract is signed to ensure fulfillment of construction work. This contract is signed between the general contractor, Construction Company and subcontractor of the government.
- Commercial surety bond: This bond ensures that the licensed company is going to fulfill all the codes. It is signed by the companies which are licensed to work in particular field.
These bonds cover the party from the losses which one was made to bear if the party entering the contract fails to fulfill its obligation.