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