There is simply no denying that surety bonds are complex. In fact, did you know that there are 5 elements that must be present before the Canadian law will even enforce the guarantee? That’s right, and these elements could include competent parties, agreement, consideration, lawful object, and prescribed form. This terminology probably only confused you even more. Not to worry because we are here for our customers. We are more than willing to take the time and weight everything out in front of you. However, before we do you must understand what a surety bond is.   Understanding A Surety Bond When it comes right down to things a construction bond is nothing more than a contract. It might be a complex one, but it is a contract at heart. This guarantee, usually in the form of a performance bond, letter of credit, or cash, is put in place to ensure the performance of an obligation. In most cases, the bond forces the principal to perform as specified in the agreement. To make things simpler, just imagine if you were getting a new roof installed. If you (the obligee) wanted to force the roofing company (the principal) to get a … Continue reading Understanding The 5 Elements Of A Surety Bond Contract