Terminations are extreme remedies, but they do happen. When an obligee terminates a contractor for failure to perform under a bonded contract the surety will determine if the obligee has triggered the surety’s obligations to act under the bonded contract and express terms of the performance bond.
Marilyn Klinger, a partner at SMTD Law, will examine the possibilities of negotiating a settlement, possibility of takeover, financing, paying the obligee, buying out the bond, or denying the claim. This examination will include examples that help to bring to light the nuances that make up the complex realities of default terminations.