a. Bidder’s Bonds
Required in connection with the submission of tenders for contracts with public authorities and private owners to guarantee that the bidder (contractor), if awarded the contract, will enter into a contract and furnish the prescribed performance bonds.
b. Performance Bonds
Required for a contractor to guarantee the full and timely performance of the contract according to plans and specification.
c. Advance Payment Bond
It undertakes to guarantee the recoupment or repayment of the advance payment granted the contractor through deductions from progress billings submitted by the contractor for his periodic accomplishment.
d. Labor and Materials Payment Bond
Guarantees that the contractor will pay all the bills incurred in connection with the use of labor and supply of materials required in fulfillment of the contract.
e. Warranty Bond
Guarantees the completed works during the maintenance period, generally one year, against defective workmanship or materials.
A fidelity bond undertakes, subject to stated conditions, to indemnify the employer against loss of money, securities and other property, resulting from qualified theft or estafa.
When a person dies, his estate may be adjudicated or distributed among his legal heirs by means of a public instrument known as the Deed of Extra-Judicial Partition. For a period of two (2) years after distribution, the properties remain charged with liability to any heir or person who has been deprived of his lawful participation in the estate.
A reconstituted title bond undertakes to indemnify the mortgagee against any loss or damage which it may suffer arising from claims presented any person against the above property whose rights might have been prejudiced, pursuant to Section 7 by 8 of Republic No. 26.
a. Administrator Bonds and Executor’s Bonds
An administrator is a person or corporation appointed by the court to administer the estate of a person who died without a will. If the deceased left a last will and testament and a person is named in his will to administer his estate, the person so designated is called an executor. To guarantee that he will faithfully perform his duties and responsibilities as required by law, the administrator, before he performs his functions, is required to give a bond in favor of the “estate,” in such sum as the court directs.
b. Guardian’s Bonds
A guardian is a person who is lawfully vested with the power, and charged with the duty, of taking care of the person and/or managing the property and rights of another person who, because of minority, or for defect of age, understanding or self-control, is considered incapable of administering his own affairs. Before a guardian performs his duties, he is required to give a bond, which assures that he will perform his duties.
c. Receivership Bonds
A receiver is an impartial person in relation to a cause or between the parties to a cause, appointed by the court to receive and preserve the property or fund in litigation and received its rents, issues, and profits, and apply or dispose of them at the discretion of the court when it does not seem reasonable that either party should hold them. A receivership bond answers for damages that the adverse party may sustain by reason for the appointment of a receiver without sufficient ground.
d. Sheriff’s Indemnity Bonds
A sheriff’s indemnity bond secures the sheriff against the claim of a third party alleging adverse title or right of possession to the property being seized.
a. Bond to Levy Attachment
The party availing of the provisional remedy of attachment is required by law to give a bond executed to the defendant in an amount not exceeding the plaintiff’s claim.
b. Bond to Lift Attachment
If the defendant wishes to lift or discharge the attachment, wholly or in part, the defendant should file a bond to lift attachment executed tothe plaintiff in an amount equal to the value of the property attached.
c. Preliminary Injunction Bond
This bond shall answer for all damages which the party enjoined by the order of injunction may sustain by reason of the issuance thereof if the court finally decides that the plaintiff was not entitled thereof.
d. Bond to Lift Injunction
A bond to lift injunction is to protect the rights of the plaintiff in the event that the latter is eventually found to be entitled to the relief demanded.
e. Replevin Bond
Replevin bond is where the person is entitled to repossession of goods or chattels from one who has wrongfully distrained or taken or who wrongfully detains such goods and chattels. A replevin bond is executed to indemnify the person from whose custody the property was taken for such damages as he may sustain.
f. Counter-Replevin Bond
After the sheriff takes custody of the property involved but before the delivery of the property to the plaintiff, the defendant may effect the return of the property to him by filing with the court a counter-replevin bond executed to the plaintiff. The condition of his bond is that the defendant shall redeliver the property to the plaintiff if such delivery be adjudged and that the defendant shall pay to the plaintiff such sum as the plaintiff may recover against him.
g. Supersedeas Bond
The purpose of the supersedeas bond is to guarantee the payment of the judgment or order appealed from in case it is affirmed wholly or in part.
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