Commercial bonds are created for the purpose of completion
of contract. The commercial surety bond is also a type
of surety bond. The commercial surety bonds are required
by the statute of the state laws and federal government.
This bond guarantees the obligation of the principal
to the obligee. It also complies that the principal
will perform the obligation prior with the contract
between the principal, the surety and the obligee. The
common commercial bonds are mortgage broker bond, license
and permit bonds, court bonds, tax bonds, fuel tax bonds,
utility bonds, fidelity bonds, miscellaneous bonds and
so on. This bond ensures that the obligator will perform
the contract as per the terms and condition of the contract.
In default of the obligator, the obligee can sue both
the principal and the surety against losses suffered.