surety bond:
1. A bond that secures the performance of an obligation; for EXAMPLE, the obligation to appear in court for trail (bail bond) or the obligation to fulfill a construction contract (a performance bond).
suretyship bond:
1. The agreement between a surety, a principal, and a creditor.
2. The instrument evidencing the agreement between a surety, a principal, and a creditor and binding the principal to the creditor. — aka suretyship contract. [1]
Related Terms:
surety – a person who promises to pay the debt or to satisfy the obligation of another person (the principal); as opposed to the obligation of the guarantor, the obligation of a surety is both primary and absolute; that is, not depending upon a default by the principal.
suretyship – a contractual relation, resulting from a primary, original, absolute, and unconditional engagement, whereby one person, the surety, engages to be answerable for the debt, default, or miscarriage of another, the principal.
Types of Surety Bonds:
performance bond – a contractor’s bond which guarantees that the contractor will perform the contract, and usually provides that if the contractor defaults and fails to complete the contract, the surety can itself complete the contract or pay damages up to the limit of the bond.
bail bond – a bond given to a court by a criminal defendant’s surety to guarantee that the defendant will duly appear in court in the future and, if the defendant is jailed, to obtain the defendant’s release from confinement.
References:
Disclaimer: All material throughout this website is compiled in accordance with Fair Use.
[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6
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