A New Jersey Surety Bond is a three-party contract between a principal (the party requiring the bond), an obliged (the party being protected) and a surety (the party providing the bond). The surety guarantees that the principal will fulfill the obligations stated in the bond. The surety's financial strength is the basis of the guarantee. There are several types of New Jersey Surety Bonds, including Construction Bonds, License and Permit Bonds, Court Bonds, Public Official Bonds, Fidelity Bonds, and Motor Vehicle Dealer Bonds. Construction Bonds are required of contractors in order to guarantee the completion of a project. License and Permit Bonds guarantee that a business will abide by all applicable laws and regulations. Court Bonds guarantee payment of a court judgment, and Public Official Bonds guarantee that a public officer will faithfully perform his/her duties. Fidelity Bonds protect employers from losses due to employee dishonesty, and Motor Vehicle Dealer Bonds protect consumers from fraud and deceptive practices.