Asked by Araceli Zambrano on Jul 09, 2024
Verified
Explain what is meant by bonding.
Bonding
The process of creating a secure financial guarantee, typically via a bond, that protects against losses from failure to meet contractual obligations or perform duties.
- Distinguish between different types of bonds and their legal implications.
Verified Answer
AG
Arthur GordonJul 13, 2024
Final Answer :
Bonding is when a person dealing with another person or company can be assured that they will be compensated if that person or company fails to properly perform their obligations. But note that the person or company that has acted wrongfully will still be required to repay the bonding company if possible, so bonding is quite different from insurance.
Learning Objectives
- Distinguish between different types of bonds and their legal implications.