A company engaged in buying, re-selling, soliciting, managing or negotiating agricultural products, requires a valid license to conduct business in the market. In order to operate freely, this company would also require an agricultural bond to safeguard the interests of producers of agricultural products, as well as the consumers consuming these agricultural products. The purpose of this bond is to shield the producers from unforeseen risks and losses during the selling of their products, and also make sure that a sufficient supply of agricultural products is maintained to all the consumers throughout the state.
According to the terms of this Agricultural bond, if the company is unable to fulfil its deliveries as per the terms defined in the bond, the customers or the parties affected by it are liable to make a claim for their monetary losses, to the extent of the full penal value specified on the Agricultural bond. This penal value is primarily dependent upon 2 main factors...
a) The type of agricultural product in question
b) The volume of annual business carried out by the company
In addition to that, before the bonding is carried out, the company/dealer engaged in the agricultural products is also required to get its bond amount verified by the state. Owing to the fact that there is always a fair possibility of the bond amount being underwritten; the price payable by the company/dealer not only depends on the bond amount, but also on the company’s financial health.
Getting a Surety Bond on-line is a child’s play...
If we were to put it in layman’s terms, a surety bond is a contract which is made to safeguard the interests of the receiving party against losses incurred due to failure of a 2nd party to fulfil its obligations. This bond is usually carried out between 3 parties; the principal, the oblige, and the surety. The purpose of this bond is two pronged; firstly it provides protection against losses, and secondly it also reflects the ability and the trustworthiness of the principal party to fulfil its obligations. This is precisely the reason why a large number of businesses and contractors get a Surety Bond to guarantee their services.
With the advent of on-line services, it has become quite easier for companies to get a Surety Bond on-line with a few mouse clicks. There are companies offering free instant bond quotes as soon as the customers fill their form on-line. Customers only have to choose their state and bond type they wish to get, and the rest of the process is completed in just a few minutes.
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