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SURETYSHIP is commonly referred to
as a triparty contract primarily because it involves
three parties and three contracts which are as follows:
PARTIES
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1. SURETY – also known
as the insurer. it issues and writes the surety
bond; one who agrees to guarantee the
performance or non-performance of an obligation
imposed upon the obligor.
2. PRINCIPAL – also known as the
obligor or debtor. it is the person in whose behalf
the bond is issued; the
one obliged to perform or not perform a particular
task or act pursuant to the terms and conditions
of the principal contract.
3. OBLIGEE – also known as the creditor
or beneficiary. it is the one who obliges the
obligor / principal the performance
of a particular act pursuant to a contract; the
ultimate beneficiary of the bond.
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CONTRACTS
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1. SURETY BOND - contract that
whereby the surety guarantees the performance of
the principal's obligation
as specified in the contract.
2. PRINCIPAL CONTRACT - specifies the
main undertaking to be performed or not performed
by the obligor and to
be guaranteed by the surety.
3. INDEMNITY AGREEMENT - executed by the
principal in favor of the surety; guarantees that,
in case of
default of the obligor, whatever
amount the surety would shell out as a result
of a claim, he would be reimbursed
for the same by the former.
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SIX MAJOR CLASSIFICATIONS OF BONDS
acc. to PHILASSURERS
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1.
Contractor's Bond
2. Customs Bond
3. Judicial Bonds
4. Guaranty Payment
5. License and Permit Bonds
6. Fidelity Bonds
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| Note: Bonds may also
be classified into two (2) major classes, to wit:
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1. Judicial Bonds.
2. Non-Judicial Bonds |
COMMONLY ISSUED BONDS IN PHILCHARTER BASED ON CLASS
CONTRACTOR’S BONDS
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| 1. Bidder’s
Bond
2. Performance Bond
3. Warranty Bond
4. Downpayment Bond
5. Payment Bond |
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CUSTOMS BOND
Class of bonds which primarily guarantees the payment
of taxes and proper handling of goods while within the
custody of the warehouseman.
1. General Bond for Bonded Warehouse
2. General Warehousing Bond
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| 1. Filed
by the importer in an amount equal to 100%
of the estimated duties and taxes on the
merchandise which
the importer expects to import during the
calendar year.
2. The regular and and lawful withdrawal
of imported articles declared in the entry
for warehousing within the
maximum period of one year from the date
of arrival of the imported articles, after
the same have been
examined and the duties, taxes, and other
chargers determined.
3. Payment of the duties, taxes, and other
charges to which the articles shall then
be subjected.
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JUDICIAL BOND
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1. Attachment
Bond
2. Heir’s Bond
3. Replevin Bond
4. Supersedeas Bond
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GUARANTY PAYMENT BOND
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| 1. Dealership
Bond
2. Lease Agreement
3. Distributorship Bond
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LICENSE AND PERMIT BOND
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| 1. Importer’s
Bond - required by the Bureau of Customs
2. Insurance Broker’s Bond -
required by the Insurance Commission
3. Custom Broker’s Bond - required
by the Bureau of Customs
4. Stock Broker’s Bond - required
by the Securities and Exchange Commission.
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FIDELITY BONDS
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1. Individual
Fidelity Bonds
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