Before obtaining a bond, the subjects must sign a compensation contract. This protects the bonding company in the event of a loss or warranty. (Learn more about guarantee loan compensation contracts) Compensation clauses are entered into contracts that allow an exemption taker to cover the potential losses of a contracting party in the contract. They can also be used to free the beneficiary of the exemption or the other party from liability in the event of infringement or damage/loss […]