Bonds Suretyship

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.

 Surety Agreement

  • 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:

 Contractor’s Bond:

  • Bidders Bond
  • Performance Bond
  • Surety Bond for Advance Payment
  • Warranty Bond

 Fidelity Bond

 Guarantee Payment Bond

 Fiduciary Bond:

  • Administrator’s Bond
  • Executor’s Bond
  • Guardian’s Bond
  • Receivership’s Bond

 Civil Judicial Bond:

  • Heir’s Bond
  • Replevin Bond
  • Counter-Replevin Bond

Supersedeas Bond

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