Skip to Content

surety

A surety guarantees the performance of another party by agreeing to stand in the place of its principal if the principal fails to do what it has promised to do. The contract through which the guarantee is executed is called a surety bond.

On This Page

surety

A surety guarantees the performance of another party by agreeing to stand in the place of its principal if the principal fails to do what it has promised to do. The contract through which the guarantee is executed is called a surety bond.

Related Terms