It is a contract by which a person agrees with the creditor to pay for the debtor if he does not do so. It is an accessory contract in which a creditor, a principal debtor and a guarantor intervene through contractual liaison. It is a contract by virtue of which a surety institution undertakes to guarantee the fulfillment of obligations with economic content, contracted by a physical or moral person before another private or public physical or moral person, in the event that it does not comply.
The characteristics of the deposit are:
Beneficiary of the policy: natural or legal person to whom the policy is granted
Obligado solidario: is the physical or moral person who collaterally commits to his assets to fulfill the obligation contracted by the guarantor before the surety in case the guarantor fails to comply.
Surety: is the legal entity legally authorized to grant bonds.
Difference between Insurance and Security
The benefits of the insurer consist of taking risks. In turn, the guarantee guarantees the payment or fulfillment of an obligation to give or not to do.
The bond is a tripartite contract, as three personal elements, the guarantor, the creditor and the surety intervene. For its part, the insurance is a bipartite contract and has only two personal elements, the insurer and the insured.
Contracts are insured and bonds also differ as to the updating of the protected object, since when the eventuality foreseen in the contract occurs, the loss in insurance matters is presented. In bonds, when the bond fails to comply with the guaranteed obligation, the beneficiary must submit a formal claim.
A surety company is a moral person, whose specific objective is to issue policies (bond) by collecting a premium, with which the fulfillment of certain obligations is guaranteed.
Its main function is to guarantee compliance with obligations, through the establishment of the guarantee as a guarantee instrument.
Importance of a fastener
By obliging themselves to comply with the established obligations, if their guaranties do not do so, they lend them their own solvency.