A bid bond is used:

A bid bond is used:


As a promise from the surety that if the principal is the low bidder and is awarded the contract, the principal will enter into the contract and provide required performance and other bonds.


To indemnify bids posted at auction.


To indemnify sealed bids.


To insure that there is fairness in the bid selection process.



Answer: As a promise from the surety that if the principal is the low bidder and is awarded the contract, the principal will enter into the contract and provide required performance and other bonds.


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