The party who purchases a surety bond and whose performance is guaranteed is called the:
a.Beneficiary
b.Principal
c.Obligee
d.Surety
Explanation
In a surety bond, the principal is the party whose obligation is guaranteed (e.g., the contractor). The obligee is the party protected (e.g., the owner or public agency), and the surety is the company issuing the bond and guaranteeing the principal's performance.
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Related questions on this topic
- To be effective, a Notice of Non-Responsibility must generally be posted on the property and recorded within how many days after the owner obtains knowledge of the work of improvement?
- Which event does NOT constitute 'completion' of a work of improvement for purposes of starting mechanics lien deadlines on a private project?
- A 'notice of cessation' may be recorded by an owner when labor has ceased on the work of improvement for a continuous period of at least:
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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)