Surety Bond Definition Explained
A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.
https://www.suretybonds.com/surety-bond-definition.html
A surety bond is defined as a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws. If the principal fails to perform in this manner, the bond will cover resulting damages or losses.
https://www.suretybonds.com/surety-bond-definition.html
Thanks for the info. I searched it out on the net but still not quite clear on it, though this helps.