In Mexico, there are different types of bond, which vary depending on the branch of specialization or the type of contract whose fulfillment is being sought.
As we know, a surety bond is an instrument of guarantee whose objective is to assure the repair of the damage and to avoid economic losses for the beneficiary, in case there is a breach by the guarantor, be it a supplier or client.
For a bond to be issued, there must be a contract in place, which can cover orders and purchase orders, in addition to other obligations. However, the purpose of the bonds will always be to support individuals or companies and respond in case of default.
Each of the types of bail plays a crucial role in the day to day of people, both individuals and companies, since its processing is necessary to ensure that the obligations and processes of a contract are carried out in time and way, ensuring compliance.
Quick Facts on Bail Bonds
Administrative Bonds: They are responsible for ensuring compliance with the obligations arising from a contract, purchase order, order or lease. Within this type of bonds are those of advance payment, compliance, good quality, and hidden defects.
Loyalty Bonds: Its function is to protect the assets of the companies, guaranteeing the repair of the damage that an employee or supplier may cause if he commits a patrimonial crime such as theft or fraud against the assets of the same.
Judicial Bonds: Its objective is to ensure compliance with the obligations resulting from a judicial process, which may be criminal or non-criminal.
Credit guarantees: They are responsible for guaranteeing the payment of credit obligations authorized by law.
In order to process a bond, it is very important to gather the necessary documentation, as well as the guarantees requested by the surety companies.
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