Defaulting On A Performance Bond Can Have Significant Economic Consequences.This Can Result In A Range Of Economic Effects, Including:
Material Author-When a surety problems a performance bond, it assures that the principal (the party that buys the bond) will certainly accomplish their commitments under the bond's terms. If the primary fails to satisfy these commitments and defaults on the bond, the surety is accountable for covering any kind of losses or problems that result.1. L