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Suretyship Bond
A suretyship bond is a contractual agreement between three parties: (i) the principal, (ii) the obligee, and (iii) the surety. Through this agreement, the surety agrees to make the obligee whole if the principal defaults in his performance of an obligation to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal.
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