State X hired Build-Right Construction to build a bridge.State X required that construction be completed within 2 years after the contract was signed.Les Johnson is the president of Build-Right.State X required that Build-Right's promise to perform be guaranteed by a third party.Build-Right purchased a performance bond from Rock Solid Indemnity.The bond requires Rock Solid to be responsible if Build-Right does not have the project completed on time.In this scenario,which party is the obligee?

Question

Quizplus · Accepted Answer

State X is the obligee because they are the party who required the performance bond to guarantee Build-Right's promise to complete the project on time. The obligee is the party who is entitled to receive the performance or obligation that is promised in the contract.

State X Hired Build-Right Construction to Build a Bridge