AFSB 151 Chapter 1 Questions With Correct Answers

Contract Bonds - Answer These bonds guarantee the performance of a written contract, such as the completion of a construction project. Bid Bonds - Answer A type of Contract bond which guarantees the obligee that if a contractor's bid is accepted, the contractor will provide the required Performance bond. (See also Contract bond) Surety bond - Answer An agreement under which one party (the surety or bonding company) guarantees to make good to another party (the obligee or owner) the debt, default, or failure to perform of a third party (the principal or contractor). Also called a bond. obligee - Answer The party in a surety to whom the surety and principal are liable principal - Answer The principal is the bonded person or organization that has the dut to perform in some way for the benefit of the obligee. Commercial surety bonds - Answer ... Fidelity bonds - Answer a type of insurance that protects a business from employee dishonesty. Performance bonds - Answer guarantee performance of the contract. payment bonds - Answer a classification of bonds that guarantee faithful performance of official duties. Public official bonds - Answer A category of Surety bonds furnished by principles who are elected or appointed to fill positions of trust, guaranteeing their faithful and honest performance in office. Fiduciary bonds - Answer These bonds guarantee an executor or administrator of an estate and/or guardian or trustee will act in the best interest of the person(s) he/she represents. License and permit bonds - Answer a classification of bonds that guarantee the performance of obligations required by licenses or permits. Common law - Answer all statutory and case law before the american revolution, including unwritten customs and traditions. statutory law - Answer the category of law that consists of the formal laws, or statutes, enacted by federal, state, or local legislative bodies. case law - Answer The rules of law announced in court decisions. Case law includes the aggregate of reported cases that interpret judicial precedents, statutes, regulations, and constitutional provisions.