What is a Surety Agreement Sample?
A sample surety agreement is one that shows the basic terms of the performance or payment bond. A surety bond is a contract between three parties. The parties are the Surety, Obligee and Obligor. The surety is the company (or individual) that is providing the guarantee under the agreement. The guarantee that is being provided could be limited to a single project, such as building an apartment building. The guarantee could be limited to a period of time, such as a year in length. The surety could also guarantee that the person being guaranteed will not steal from their employer. The Obligor is the party that is being obligated under the contract. That is, in a construction context, it is the construction company. This is the person that the surety is providing their guarantee on behalf of. The party that is being protected is the Obligee. In a construction context, the Obligee is the owner of the land.
A surety contract is used to assure that a surety can recover from the Obligor.
We have many example of a surety agreement and can provide samples to be used in a variety of situations. Our sureties tend to use AIA approved forms for their surety agreement sample. Please call us for your performance bond needs at (913) 214-8344