A promise by one party to assume responsibility for the debt of another.
For example, if Contractor A fails to pay a debt to Customer B for a lawsuit for bad workmanship, then the bond would cover the payment for Contractor A.
A promise by one party to assume responsibility for the debt of another.
For example, if Contractor A fails to pay a debt to Customer B for a lawsuit for bad workmanship, then the bond would cover the payment for Contractor A.