|A contract of suretyship is an agreement whereby a party, called surety guarantees, the performance by another party, called the principal or obligator, of an obligation or undertaking in favor of a third party, called the obligee.|
|Is one whereby the surety, bound jointly and severally with the contractor as principals, reinforces the latter’s obligation to the owner to abide by his obligations under the contract. The contractor agrees with the surety that in the event of his failure to perform the contract and carry out all his obligations thereunder, he will indemnify the surety for any loss or expense caused by such failure.|
|A judicial bond is a type of bond required by the courts of justice or administrative bodies clothed with quasi-judicial powers in connection with the proceedings conducted before them. It constitutes merely a class of guaranty, characterized by the fact that they are given by virtue of a judicial power or in compliance with a provision of law.
A judicial bond may be a fiduciary or a court bond.
Fiduciary bonds are filed by persons who have been named to a position of trust to administer funds and/or property of others under the supervision of the court.To the other classification of judicial bonds belong the court litigation bonds which are required in judicial proceedings. These proceedings may either be civil or criminal actions or special proceedings instituted in the courts of justice or in proceedings before quasi-judicial bodies. The requirement of these bonds is generally found in the Rules of Court. A court bond empowers the principal who is bonded to secure certain legal benefits that he could not obtain without the bond. It may be required from a plaintiff or a defendant. The obligation or undertaking assumed under a court bond is to pay whatever is the loss or damage the obligee may sustain, in the event the final decision on the matter in controversy is adverse to the principal of the bond.
|An undertaking wherein the surety or bonding company agrees, subject to stated conditions, to indemnify the employer against loss of money, securities or other property resulting from any fraudulent or dishonest acts committed by any of the employees acting alone or in collusion with others. This bond is usually obtained by employees upon requirement of their employers and requires prior conviction clause before the employer can claim from the bond.|
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