Which party in a bond stands to benefit from the bond's protective measures?

In the context of bonds, the obligee is the party that stands to benefit from the bond's protective measures. The purpose of a surety bond is to provide a guarantee that the principal (the party required to perform the obligation) will fulfill their obligations as specified in the bond agreement. If the principal fails to meet these obligations, the surety (the company that issues the bond) is responsible for compensating the obligee for any losses incurred due to that failure.

The protective measures within a bond are primarily designed to safeguard the interests of the obligee, ensuring that they have financial recourse if the principal does not uphold their end of the contract. This could include situations like contractors completing a project or licensees adhering to regulations. Therefore, the obligee benefits from the bond's protective features during instances of non-performance by the principal.