question archive State X hired Build-Right Construction to build a bridge

State X hired Build-Right Construction to build a bridge

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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 and which party is the principal?

A) State X

B) Build-Right Construction

C) Les Johnson

D) Rock Solid Indemnity

 

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