Concept in Definition ABC

The word caution has two equally widespread uses, on the one hand, it is used to refer prevention or caution In any aspect, for example, applied to an individual, it can refer to the caution that he shows when acting. “ Juan acts with great caution, it is impossible that he has broken the bottle.”

Calm that someone presents in their behavior

The surety in this sense implies the preparation and disposition of a person accordingly to prevent a risk from occurring, or failing that, to deploy an action.

There are situations that demand that you act with reserve and calm in order to avoid unpleasant consequences, or some fact that causes a problem x and does not allow you to continue acting or doing something.

Prudence, which is justly considered a divine virtue, is a characteristic of people who act with caution, since it will always imply acting with reflexivity and caution in order to avoid damage or dangers.

To avoid making mistakes, or making hasty decisions, it will always be ideal

think, take the time necessary to evaluate each alternative, and in this way be able to choose the more appropriate, otherwise, when acting without caution or without thinking, it is common to commit mistakes.

Guarantee that ensures that a party will comply with the agreed agreement

And on the other hand the word surety is the guarantee, the safety staff that the agreed upon will be fulfilled in a timely manner, for example a contract, an agreement entered into, among others.

Therefore, it is a concept that is used repeatedly in the field of right to name that guarantee that will be provided to ensure that a obligation contracted will be effectively fulfilled without delay or setbacks.

In other words, with the security in force, it will be guaranteed that a sentence is fulfilled in the event that a judicial claim is reached.

When a person signs an agreement or contract x and wants to be reliably believed that he will comply with the terms agreed will show a surety, which is a guarantee as we have already indicated, and which will assure the other party that they will comply with the agreement.

It may be presented as a surety to a guarantor, that is, a natural person, or a valid oath or commitment may be made before a authority relevant that will validate it, of course.

The surety always assumes the function of being a guarantee of payment or compensation for an economic loss.

It is always managed before the eventual possibility of suffering damage, it is a safeguard and defends the interests of one of the parties involved in the agreement.

Meanwhile, the concept of surety is closely linked to the universe of insurance.

Surety insurance: it is contracted so that the insurer compensates the party that suffers damage

Surety insurance, also know as warranty insurance, will be that insurance contract from which the insurer undertakes to indemnify the other party, the insured, for the damages suffered by the latter in the event that the policyholder, who is the contracting party, the person who stipulates the insurance contract and sign the policy issued by the insurance company, fails to comply with the obligations, whether legal or contractual, that it maintains with it.

The reason for this type of insurance finds its objective when one of the parties involved in a contract requires from the counterpart a guarantee that shields the compliance of the obligations that it contracted, then, the way to obtain the guarantee is to contract the surety insurance, since if the obligated party fails to comply with its commitment The insurer is the one that will be responsible for the compensation resulting from the aforementioned breach, always within the agreed conditions opportunely.

The surety is a widely disseminated insurance at the time of signing contracts with public administrations; in this case, the contract taker is the contractor company and the insured is the public administration.

It should be noted that the main advantage that results from this type of insurance is that it does not involve large losses economic over current assets, since it is enough to pay the insurance premium to be properly covered.

So, surety insurance consists of three parts: insured or principal (beneficiary of the insurance), insurer or company (insurance issuing entity, guarantees to the insured the fulfillment of the obligation contracted at the time by the proposer) and the proponent or taker (Responsible for complying with the obligation, signs the agreement with the company so that once it is signed, it issues the corresponding policy).

Surety Issues