A surety bond that ensures a property owner of the completion of a construction contract or payment of actual damages to the extent of the bond in the event that the contractor fails to complete it is called a _____ bond:
A) judicial
B) fidelity
C) chattel
D) codicil
E) performance

Question

Quizplus · Accepted Answer

The description provided in the question matches the purpose of a performance bond, which is to protect the property owner in case the contractor fails to complete the construction contract. Therefore, the correct answer is performance bond (option E).

A Surety Bond That Ensures a Property Owner of the Completion