Surety bond – a written contract in which one party guarantees a second party’s performance to a third party for the second party’s failure to fulfil an obligation
Principal – the bonded person or organization that has the duty to perform in some way for the benefit of the obligee
Obligee – the party to whom a bond is given and who is protected against loss. Generally, the party that can make a claim
Surety – the party to a surety bond who answers to the obligee for the principal’s failure to perform as required by the underlying contract, permit, or law.