| This clause is significant, because the obligee may have losses in excess of the penalty of the bond. |
| An agreement between an obligor and an obligee as to what is commercially reasonable shall, subject to paragraph 3, be conclusive. |
| However, tax may not actually be collectible if the obligee is, under an Act of Parliament for example, not required to pay tax. |
| Rather, the relationship between me and my obligee is fundamental to any explanation of my special obligations to that obligee. |
| It is a three-party agreement between the principal, the obligee and the surety. |
| The Contract required Company B to purchase a performance bond identifying Company A as the obligee. |
