I. Contractors Bonds – refers to a class of surety bonds that construction contractors, supply and delivery contractors and service contractors are required to file as guarantee for the performance of their contracts with government or private parties.
a. Performance Bond – this is required of a contractor to guarantee the full and timely performance of the contract according to the approved specification and plan.
b. Bidder’s Bond – this is required in connection with the submission of tenders/offers for contracts with public authorities to guarantee that the bidder if awarded the contract, will enter into a contract and comply with the
II. Judicial Bonds – these are required in judicial proceedings, either civil or criminal, instituted in the Court of Justice.
a. Attachment Bond – a bond posted by the principal to avail of the remedy of attachment. It guarantees the payment of all cost which may be adjudged to the adverse party and all damages which he may sustain by reason of attachment if the court finds that the principal is not entitled to the remedy of attachment.
b. Injunction Bond – A bond posted by the principal to avail of the remedy of injunction. This answers for any cost the court shall award to the opposing party if the principal was adjudged as not entitled to such provisional remedy.
c. Replevin Bond – A bond posted by the principal to repossess a personal property from the oblige. This undertakes to answer for any and all expenses that the oblige may suffer if the principal is not entitled to the remedy of repossession.
d. Administrator’s Bond – A bond posted by the principal in order to be appointed as administrator to the estate of a person who died without a will and guarantees performance of his duties and responsibilities required by law.
e. Guardian’s Bond – A bond posted by the principal in order to be appointed as guardian. This undertakes to ensure compliance by the guardian relative to his statutory duties.
f. Heirs Bond – this is required in any intestate proceeding, i.e., a person dies without a will and his estate will be distributed to the legal The Bond undertakes to indemnify the heirs who may have been deprived of his lawful share in the estate.
III. Surety Bond is required to ensure that the principal’s obligations will be performed. among at least three parties. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement