| Under the agreement for the construction work, the obligee is liable to pay for the work. |
| The surety is required to collect and remit the tax the obligee is required to pay. |
| The Contract required Company B to purchase a performance bond identifying Company A as the obligee. |
| 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. |
| It is a three-party agreement between the principal, the obligee and the surety. |
