An agreement whereby the Surety, for a fee known as premium, guarantees the performance of the Principal or Obligor of an obligation or undertaking in favor of third party called Obligee.
Parties to a Bond
- Surety – issues the bond and is the guarantor.
- Principal or Obligor – fulfills the obligation and on whose behalf the bond is issues by the Surety.
- Obligee – beneficiary of the bond or in whose favor the bond is issued and protected against losses due to non-performance of the Principal.
- Principal Contract – contract between Principal and the Obligee where the former binds himself to faithfully performs his obligation in accordance with the terms and conditions agreed upon.
- Contract of Suretyship – contract wherein the Surety guarantees the faithful performance and compliance of the Principal of his contract with the Obligee.
- Indemnity Agreement – contract or agreement where the Principal and his Co-indemnitors bind themselves to reimburse the Surety for losses incurred. This agreement also provides that the Principal agrees to pay the bond premium.
Liberty Insurance Corporation provides the following bonds:
- Bidders Bond
- Performance Bond
- Surety Bond for Advance Payment
- Warranty Bond
Guarantee Payment Bond
- Administrator’s Bond
- Executor’s Bond
- Guardian’s Bond
- Receivership’s Bond
Civil Judicial Bond:
- Heir’s Bond
- Replevin Bond
- Counter-Replevin Bond