There are many different types of bonds. Some include: Fiduciary, Notary, Public Official, License and Permit, etc. Two fairly common types of bonds are fidelity and surety bonds. Surety bonds are three-party contract in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed. For example, most construction contractors must provide the party for which they are performing operations with a bond guaranteeing that it will complete the project by the date specified in the construction contract in accordance with all plans and specifications.
